Bloomberg Hedge Fund Indices note that some have gained over 20% by buying up troubled financial crisis era mortgages.
"It's been an unusually attractive time to invest in the mortgage market," said Steve Kuhn, head of Pine River Capital Management's $3.5 billion fixed income fund. "A tremendous amount of capital got lost or removed, and that's created a very large hole."
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CNN Money also details how those who have generated the best returns "jumped deep into the pool of mortgage-backed securities."
Various smaller funds focused on mortgages, including Deer Park Road, which is based in Colorado.
