By David Graubard
Prologue Capital, a $2.4 billion macro fixed-income hedge fund firm in Greenwich, Connecticut that trades bonds, sovereign debt, currencies and mortgage-backed securities, has launched its first new fund since the firm opened for business in late 2005.
The Prologue Liquid Mortgage Fund focuses on high-volume trading of government-guaranteed mortgage-backed securities, versus the more common strategy of buying and holding unguaranteed MBS investments, which Prologue’s investment team thinks are overvalued and on the precipice of a correction.