Lippmann Reduces Subprime Wagers While Seeing Housing Recovering
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Greg Lippmann, the former Deutsche Bank AG trader who gained fame by betting against subprime-mortgage bonds before housing collapsed, reduced his more recent bullish wagers even as he sees a durable real-estate recovery.
Lippmann’s $2.3 billion hedge fund, New York-based LibreMax Capital LLC, shifted more toward commercial-mortgage bonds, collateralized loan obligations and consumer-tied securities last quarter, he wrote in a Nov. 19 letter to investors. Still, subprime notes represented 35 percent of its “long” positions as of Sept. 30, down from 40 percent on March 31, and other residential debt accounted for 16 percent.