FINalternatives- Buoyed by tumult in the mortgage market, a Miami-based real estate company is making the leap into the hedge fund space with the debut of two offshore funds.

ARE Asset Management has launched the ARE Fixed-Income Fund and the ARE Opportunity Fund with $100 million each. The funds will invest in the U.S. residential and commercial real estate markets, with Opportunity purchasing non-performing residential mortgages at a discount and managing those loans to recovery or foreclosure, and Fixed-Income originating low loan-to-value cash and bridge loans on commercial properties.

The Fixed-Income Fund is targeted to deliver fixed monthly dividends to investors using highly-collateralized, low principal risk investments, and is structured as an open-ended mutual fund with a range of share classes, dividend rates and lock-up terms.

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