SkyBridge Capital, which provides strategic capital to new and early-stage hedge funds, has committed to invest in WyeTree Asset Management, a London-based investment management firm fo
SkyBridge Capital, which provides strategic capital to new and early-stage hedge funds, has committed to invest in WyeTree Asset Management, a London-based investment management firm focused on the residential-mortgage markets.
WyeTree invests globally in assets with highly predictable cash flows linked to residential mortgages and residential real estate. Supported by a proprietary database and analytical tools, the WyeTree team seeks to identify distressed assets that derive their principal risk and return from residential mortgages or residential real estate, and which are oversold due to market technical factors.
WyeTree is currently investing in US sub-prime mortgage-backed securities and sub-prime mortgages, but it is expected to eventually invest in mortgages outside the US, as well as in securities backed by home loans rated higher than sub-prime. The vehicle may also invest in other distressed assets.
In addition to providing WyeTree with long-term strategic capital, SkyBridge Capital will seek to enhance its investment in WyeTree by providing business-building support. SkyBridge Capital’s investment is being made from its SkyBridge Capital II Fund. In aggregate, SkyBridge Capital and its underlying managers currently have approximately USD1.5bn under management.
WyeTree was founded in 2007 by two securitization specialists: Michael Chacos, chief executive officer, and Judith Sciamma, portfolio manager.
Scott Prince, managing partner of SkyBridge Capital, says: "Judith Sciamma and Mike Chacos are proven investors in the residential-mortgage markets arena, and we are pleased to back the firm. WyeTree is currently investing in US sub-prime mortgage-backed securities and sub-prime mortgages, a significant opportunity in itself, but the team also will have the ability to invest in mortgages outside the US and in other assets."
Chacos adds: "As we focus on the substantial market opportunities that exist within the residential mortgage markets arena, we are pleased to partner with SkyBridge Capital, the premier strategic investor in new hedge fund managers. SkyBridge possesses unmatched business-building and investment-support capabilities, including an exceptional risk management capability and a growing distribution platform — all of which will benefit WyeTree as we continue to build the firm."