Despite what might look like an industry in turmoil, Rael Gorelick of Gorelick Brothers Capital says it's "incredibly rich time" for mortgage-related investments. And his firm, self-described as a fund for funds, is capitalizing on this unique opportunity with the recent up-start of a closed-end fund called Morrocroft Special Opportunity Fund II. A closed-end fund is a specialized type of investment pool that hosts opens for a specific amount of time or up to a certain capital ceiling. Once the cap for the pool is reached, it closes and capital acquisition ceases. Gorelick launched its first closed-end fund, Morrocroft Special Opportunity Fund I, in March of 2008. Morrocroft II is a follow-up initiative that, Gorelick said, spawned out of popular demand. "Mortgages are a hard asset class for investors to access," Gorelick told HousingWire in an interview. "It's about fairness. We keep it simple. We keep it clean," he said. Morrocroft II opened on Oct. 1 and will close on April 1, 2011. Morrocroft II will be invested in non-agency mortgage-backed securities, agency MBS and whole residential mortgages. So far, Morroccroft II has raised approximately $40 million. Gorelick could not comment on how much capital he expects to be contributed to the fund, but said it has the capacity to hold $200 million. Ultimately, Gorelick said the fund is a way of capitalizing on "orphaned assets." Where some investors trying to sell things they didn't intend to buy (either because of misrepresentation of the market or lack of knowledge in the field), Gorelick Brothers is there to buy those distressed loans and give them a home. "These are orphaned assets that need someone who will love them," Gorelick said. "I love them because I know what I'm buying." Write to Christine Ricciardi.