Hedge Funds Housing Rebound

Hedge Funds Betting on Coming Housing Rebound

As the sub-prime mortgage crisis emerged, several savvy hedge fund investors made a lot of money betting that the housing bubble would burst. Now, some hedge funds are betting that housing is going to rebound soon and are positioning their funds to gain from the realization of that prediction.

Big money is starting to wager on housing.

Hedge funds run by Caxton Associates LP, SAC Capital Advisors LP, Avenue Capital and Blackstone Group LP have been buying housing-related investments, betting on a rebound. And formerly bearish research firm Zelman & Associates now predicts a housing pickup, as does Goldman Sachs Group Inc.

Other investors seem to be making the same bet. Shares of home builders are up 30% since the end of the third quarter, as measured by the Dow Jones index tracking those shares, topping a nearly 10.5% gain for the Standard & Poor's 500. Source

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