Jan 28 (Reuters) - Deepak Narula, one of the hedge fund industry’s best known mortgage bond traders, told clients his flagship Mortgage Opportunities Fund ended the year up 0.53 percent, recovering from double-digit losses in the second quarter.
“After a dismal second quarter the fund was up nearly 10 percent in the second half of 2013 to finish the year in the black at +0.53 percent,” he told clients in a letter dated Jan. 24 and seen by Reuters. The fund managed $1.23 billion in assets.
The firm’s Rising Rates Fund, launched in May, performed much better as interest rates increased and refinancing activity slowed. It ended the year with a 20.11 percent gain. Its assets nearly doubled to $322 million on Jan. 1, 2014 from $169 million on Oct. 1, 2013.