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Magnetar Capital Raises $370 Million for Mortgage-Bond Funds

Magnetar Capital LLC, the hedge fund that profited from subprime defaults in 2007 after helping create collateralized debt obligations, raised $370 million to bet on mortgage bonds.

The firm raised the money in two separate Magnetar Mortgage Securities funds, which were started last year, it said today in filings with the U.S. Securities and Exchange Commission. Hedge funds often raise money in two vehicles with similar names to serve onshore and offshore investors. The $370 million may not reflect any redemptions.