Tilden Park Hires Ex-Deutsche Bank Mortgage Trader NamKelly Bit
Keeyeol Nam, former head of structured products in a proprietary trading unit at Deutsche Bank AG, joined Tilden Park Capital Management LP to expand the hedge-fund firm’s trading in government-backed mortgage bonds.
Nam joined the $1.6 billion New York-based firm founded by former Goldman Sachs Group Inc. trader Josh Birnbaum last week as managing director, Tilden Park said yesterday in a letter to investors obtained by Bloomberg News. Nam will also help the firm increase its trading in mortgage derivatives.
He was a director at Deutsche Bank Capital Management, the proprietary trading unit that wound down at the end of last year, where he focused on mortgage derivatives, Tilden Park said. His appointment follows that of Michael Boyle, who traded commercial mortgage securities at the Deutsche Bank unit and started at the hedge fund in March, two people familiar with the move said at the time.
Deutsche Bank, Germany’s biggest lender, closed the proprietary unit, which took market positions with the bank’s money, as it faces rules curbing risk-taking, three people familiar with the matter said in March.
Catherine Jones, a spokeswoman for Tilden Park at ASC Advisors LLC, declined to comment on the hire, as did Renee Calabro, a spokeswoman for Deutsche Bank.
Before spending more than seven years at the bank, Nam was a senior vice president at Royal Bank of Scotland Group Plc’s RBS Securities unit, formerly RBS Greenwich Capital, where he was responsible for homeowner prepayment modeling, mortgage analytics and trading research, according to the letter.
Birnbaum and Jeremy Primer, who had worked together at Goldman Sachs, founded Tilden Park in 2008. Birnbaum, a trader at the time, was instrumental in the bank’s profitable bet against the U.S. subprime mortgage market in 2007.
Tilden Park’s fund, which invests in non-agency and agency residential mortgage securities, commercial mortgage bonds and asset-backed securities, rose 11 percent this year through April 26 and 41 percent in 2012, the firm said in the letter.