MKP Capital Management

MKP Capital Management, named for its founders Patrick McMahon, Eric Keiter and Maurice (Chip) Perkins, keeps a low profile, but when it gets media attention, it’s for all the right reasons. The macro and credit-focused hedge fund firm was one of the best-performing hedge funds following the 2007 market meltdown, producing 22.6 percent gains through August of that year thanks to plays in the U.S. mortgage-backed securities market. Its credit fund was flat the following year, only to gain 17.1 percent in 2009. The global macro MKP Opportunity fund was up 9.8 percent in 2008 and 12.8 percent in 2009. The firm’s first down year was 2011, when the credit funds were pummeled by losses in bonds tied to U.S. real estate loans and declined by 4.8 percent in the first half of that year. That year notwithstanding, CEO and co-CIO McMahon, the only founder still with the firm, has kept the winning streak running…

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