Gorelick Optimistic on Mortgage-Backed Securities

by: FINalternatives

Buoyed by the success of its first residential mortgage-backed securities fund of hedge funds, Gorelick Brothers Capital has launched a sequel.

The North Carolina-based fund rolled out the Motorcroft Special Opportunity Fund II with $30 million in initial assets (both firm capital and money from multi-family offices), according to HFMWeek. Unlike its predecessor, the new closed-end vehicle will invest in agency loans in addition to non-agency and whole loans.

Motorcroft I, which debuted in March 2008, is up 14% this year.

Former Banc of America Securities collateralized debt obligations head Christopher Skardon will manage the new fund, which has a $200 million capacity. It will invest in between 10 and 15 managers.

Gorelick currently manages $120 million.