Bloomberg – Josh Birnbaum, one of the traders who led Goldman Sachs Group Inc.’s push into bets against subprime-mortgage bonds, has left the world’s biggest securities firm and plans to form a $1 billion hedge fund.
Birnbaum, 35, confirmed his departure and declined to elaborate on his plans. He has told colleagues he expects his new fund will invest in mortgage assets, according to two people familiar with his thinking who declined to be identified.
At least 70 funds have been established during the past year by firms such as New York-based Goldman, Blackstone Group LP and Pacific Investment Management Co. to snap up cheap home-loan debt amid the steepest drop in U.S. home values since the Great Depression. Birnbaum helped Goldman offset losses on mortgage holdings and earn a record $11.6 billion last year.
