Declaration Management and Research Announces Final Distributions from Two Mortgage Funds
February 09 2010 - 10:00AM
PR Newswire (US)
- Firm Closes Two Highly Successful Mortgage Opportunity Funds -
Returns Capital And Earnings To Investors Ahead Of Schedule MCLEAN,
Va., Feb. 9 /PRNewswire-FirstCall/ -- Declaration Management &
Research LLC (DMR) today announced that it had issued the final
distributions from its highly successful DMR Mortgage Opportunity
Fund LP and DMR Mortgage Opportunity Companion Fund LP. The two
funds were launched in May and November of 2008 and closed with
aggregate capital commitments from institutional investors of $417
million. The funds were designed to take advantage of the
dislocation in the structured credit markets that began in late
2007, primarily in residential mortgage backed securities (RMBS).
At inception, each vehicle was expected to have a three to five
year holding period. Net realized IRR's from capital calls until
the final cash distribution near the end of last month were
approximately 27 percent and 42 percent, the company said. "As 2009
progressed it became evident to us that the strong price recovery
in distressed mortgage securities was generally detached from the
underlying credit fundamentals," said Jim Shallcross, Declaration's
Director of Portfolio Management and the funds' lead manager. "In
our view, by the fourth quarter, the intrinsic cheapness of these
securities was gone and it was time to exit the trade. Our clients
were both surprised and pleased to receive their capital and
earnings in such a short time frame." The funds, which did not use
leverage, found the best value opportunities before market
technicals turned positive for the sector. By year-end 2009, the
new clearing level in RMBS valuations allowed DMR an orderly and
profitable exit from the funds' positions. In the next stage of the
credit cycle, DMR expects to find select opportunities through its
extensive security selection skills. "These funds were designed for
what we would call the deep value phase of this market cycle," said
Declaration President Bill Callan. "The next phase, which we
believe can be as remunerative, will require a more flexible
approach including long-short capabilities." About Declaration
Management & Research LLC Declaration Management & Research
LLC is an SEC registered investment advisor, specializing in a
broad range of structured finance and core fixed income strategies.
It was established in 1989 and is based in McLean, Virginia.
Declaration's clients include public and private pension plans,
state agencies, mutual funds and other institutions. As of December
31, 2009, Declaration has assets under management of $11.3 billion.
Declaration is an operating company of MFC Global Investment
Management, the asset management arm of Manulife Financial
Corporation. About MFC Global Investment Management® MFC Global
Investment Management® is the asset management division of Manulife
Financial. MFC Global Investment Management's diversified group of
companies provides comprehensive asset management solutions for
Institutional investors, investment funds and individuals in key
markets around the world. This investment expertise extends across
a full range of asset classes including equity, fixed income and
alternative investments such as oil and gas, real estate, timber,
farmland, as well as asset allocation strategies. MFC Global
Investment Management has investment offices in the United States,
Canada, the United Kingdom, Japan, Hong Kong, and throughout Asia.
As at December 31, 2009, assets under management for institutional
clients were approximately Cdn$110 billion. MFC Global Investment
Management®, Manulife and the block design are trademarks of The
Manufacturers Life Insurance Company and are used by it and its
affiliates including Manulife Financial Corporation. About Manulife
Financial Manulife Financial is a leading Canadian-based financial
services group serving millions of customers in 22 countries and
territories worldwide. Operating as Manulife Financial in Canada
and Asia, and primarily through John Hancock in the United States,
the Company offers clients a diverse range of financial protection
products and wealth management services through its extensive
network of employees, agents and distribution partners. Funds under
management by Manulife Financial and its subsidiaries were
Cdn$436.5 billion (US$407.1 billion) as at September 30, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and
PSE, and under '945' on the SEHK. Manulife Financial can be found
on the Internet at http://www.manulife.com/. DATASOURCE:
Declaration Management & Research LLC CONTACT: Brian
Carmichael, +1-617-663-4748, Web Site: http://www.manulife.com/
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