Michael Vranos, founder of Ellington Management is looking to raise $750 million to fund a subprime mortgage fund called Ellington Financial, reports The New York Times. The search for funding comes as several hedge funds with subprime exposure have closed shop or had to cease redemptions.
At least part of the offering will invest in equity residuals issued by New Century Financial, which went bankrupt in April. Vranos currently manages $5.4 billion in hedge funds, $1.2 billion in managed accounts and $23 billion in collateralized debt obligations.
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