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Newly formed hedge fund, Trevally, positioning for a housing collapse similar to 2008
A gathering storm... First they jacked up housing prices, now they will swoop in as those same markets collapse.
https://www.bnnbloomberg.ca/investing/2024/11/08/jim-pallotta-backs-fund-that-sees-strain-in-us-housing-market/
Trevally is a minority-led firm co-founded by Chief Investment Officer Steve Palmer and Co-Chief Executive Officers Matt Jozoff and Brett Nicholas. It has raised about $100 million in total seed capital, including backing from investment bank Seaport Global Securities, and it has early commitments from other investors for as much as $150 million more.
Representatives for Raptor and Seaport declined to comment, as did Trevally, which is named for a predatory fish with excellent vision.
Trevally aims to make consistent double-digit returns by taking advantage of strains it sees on the housing market — including extreme weather, higher home insurance costs and elevated mortgage rates that have curbed borrowers’ mobility. It will initially focus on investments tied to government-owned Ginnie Mae, which securitizes mortgages taken out by low- and moderate-income households.
“We believe many servicers may become unable to perform their obligations, creating significant investment opportunity in Ginnie MBS,” the firm wrote in the investor presentation.
Representatives for Raptor and Seaport declined to comment, as did Trevally, which is named for a predatory fish with excellent vision.
Trevally aims to make consistent double-digit returns by taking advantage of strains it sees on the housing market — including extreme weather, higher home insurance costs and elevated mortgage rates that have curbed borrowers’ mobility. It will initially focus on investments tied to government-owned Ginnie Mae, which securitizes mortgages taken out by low- and moderate-income households.
“We believe many servicers may become unable to perform their obligations, creating significant investment opportunity in Ginnie MBS,” the firm wrote in the investor presentation.
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