Ambit Funding launches new high-yield fixed-income strategy
Asset-backed lender Ambit Funding, has launched its first two hedge funds: Ambit Bridge Loan Fund; and Ambit Bridge Loan Fund International.
The first fund, is an onshore hedge fund for domestic high net worth investors while the second is an offshore hedge fund for institutional investors.
The two hedge funds will comprise loans that the firm originates in the USD 1 million - USD 15 million range to real estate investors for a mixture of commercial and multi-family residential properties. The short-term bridge loans made will be first mortgages. Such income-producing asset-backed loans have limited correlation to other asset classes.
We know that institutional and high net worth investors are seeking out alternative fixed income investments that have the potential to add total return to, and buffer the downside risk exposure from, the more market-like returns generated by their core equity allocations,' noted Ben Shoval, a co-Founder of Ambit, 'Also, there is interest in alternatives to investing in traditional mortgage pass-through securities that, because they consist of a pool of long-term residential mortgage loans, are more sensitive to interest rate changes and prepayment risk. We believe Ambit Funding‚s asset-backed investment strategy can help meet these needs,' he added.
Ambit Funding does not buy or sell portfolio holdings. The firm extends credit to borrowers and holds collateralized, income generating positions to maturity.
Headquartered in Wilkes-Barre, PA, Ambit Funding was founded in 2005 as an affiliate of Shoval Enterprises, which has been involved in banking, lending, real estate, insurance and related servicing businesses for over twenty years. The three founding members of Ambit Funding are Y Judd Shoval, William M Lezinski and Benjamin W Shoval.
Since early 2005, capital from the founders, related entities, and select private investors, have already invested a total of approximately USD 165 million in the strategy that the two new hedge funds will follow.
In a separate development, Ambit announced the appointment of Steve Cohen and Alex Mount, as Managing Directors.
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