Deer Park Bets on Real Estate, Expecting Fed to Cut Rates in ‘24

  • Raises $170 million for debut mortgage opportunity fund
  • Fed rate cuts on the horizon to boost returns, cut risks: CIO

Deer Park Road Management will aim to capitalize on trades in legacy residential mortgage-backed securities.

Photographer: David Paul Morris/Bloomberg
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Hedge fund firm Deer Park Road Management Co. is set to pounce on beaten-down prices in the residential mortgage market on expectations that the US Federal Reserve will start lowering rates later this year.

The Steamboat Springs, Colorado-based money manager, known for its wildly lucrative wagers on deeply discounted mortgage- and asset-backed securities in the wake of the 2008 financial crisis, has raised $170 million for its debut mortgage opportunity fund, the firm’s Chief Investment Officer Scott Burg said in an interview.