Scratch-and-Dent Specialist Launches Hedge Fund Targeting Distressed Mortgages
Not every mortgage business is feeling the heat as part of the industry-wide downturn. Houston-based Oxford Funding -- whose slogan (Profiting in a Mortgage Meltdown) earned the attention of Time's Justin Fox last week -- said Monday that it has launched a hedge fund to invest in discounted portfolios of residential and commercial mortgages. According to a press statement, the fund will invest in performing, sub-performing and non-performing mortgages purchased on the secondary market "at substantial discounts to face value." Oxford has gotten some attention so far for delivering returns on its scratch-and-dent business, in spite of market difficulties that have wounded much larger operations, including C-BASS and Franklin Credit. (See previous coverage on scratch-and-dent here). Last week, the firm said it had realized 90 percent ROI on its own loan portfolio during 2007. â€œThe Fund gives Oxford Funding another vehicle and another opportunity to profit from disruptions in the current mortgage markets,â€? said Ron Redd, Oxford's CEO. â€œThere is presently so much opportunity in the market; we want to capitalize on as much as possible.â€? For more information, visit http://www.oxfordfunding.com.