Black Pearl Sails Into Subprime Seas
Buccaneer's are always hot for adventure.
Hedge fund firm Black Pearl Asset Management on Tuesday said it will launch portfolios to snatch up cheap subprime mortgage securities battered by the current crisis.
Black Pearl, co-founded by Jim Midanek and John Pak in 2002, will invest up to $500 million in mortgage securities that have been tarnished amid increased risk-aversion in the sector, the managers said in a statement. The subprime market is approaching a point where "widespread price dislocation" is likely, Pak said in the statement.
"Investors need to position capital now to participate in this tactical trade," Midanek said in the statement. "The investment phase of this cycle is nearly upon us."
Has the point arrived to take a flyer in CDO's? Or is this just a publicity stunt by the crew of the Black Pearl?
Sure, all the good names are taken. But Black Pearl?
“It turned out to be very hard to find a name, much harder than we expected,” Mr. Midanek said. “We had lists and spread sheets and a lot of discussion.” Mr. Midanek and John Pak, the firm’s chief executive officer, finally decided on Black Pearl Asset Management LLC.
“At first, I didn’t like it at all,” Mr. Midanek said. “I had these images of Johnny Depp prancing on the deck of a ship of the same name in that Disney movie, ‘Pirates of the Caribbean.’ But it’s been growing on me, and now I really like it.”
Black Pearl’s first hedge fund launches in May. Mr. Midanek said the firm has closed its mutual fund — the Ultra Short Duration fund — and returned most of the $100 million it managed to investors. Mr. Midanek said an absolute-return investment strategy is better aligned with the investment experience he and Mr. Pak used while managing about $1 billion at Turner Investment Partners Inc., Berwyn, Pa., prior to starting their own firm.
Good luck guys. By the way, can you give me a afterhours quote on BSC?
Yo ho ho, a hedge fund’s life for me
Pensions & Investments
Hedge fund gears up to buy suprime bonds, cheaply
Reuters
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