John Burbank, the hedge-fund manager who’s betting on a global recession, plans to follow rivals in buying U.S. mortgage securities without government backing amid increasing signs the housing market is recovering.
Burbank’s Passport Capital LLC will purchase non-agency mortgages to hedge investments that may underperform if property prices jump, said Jeff Kong, who’s leading the effort. Raphael Gonzalez, most recently JPMorgan Chase & Co.’s co-head of trading for subprime mortgages, this month will join the San Francisco-based firm, which oversees $3.4 billion.
