{"id":90826,"date":"2025-10-16T00:29:34","date_gmt":"2025-10-16T04:29:34","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=90826"},"modified":"2025-10-16T01:43:51","modified_gmt":"2025-10-16T05:43:51","slug":"star-trader-departs-lmr-after-mortgage-bond-bet-backfires","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2025\/star-trader-departs-lmr-after-mortgage-bond-bet-backfires.html","title":{"rendered":"Star Trader Departs LMR After Mortgage Bond Bet Backfires"},"content":{"rendered":"\n<p>(HedgeCo.Net) LMR Partners, a $12.8 billion multistrategy hedge fund, has lost one of its marquee traders,\u00a0<strong>Andrew Berger<\/strong>, following a painful reversal in a mortgage-backed securities (MBS) trade.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.businessinsider.com\/hedge-fund-star-andrew-berger-leaves-lmr-mbs-trade-backfire-2025-10?utm_source=chatgpt.com\" target=\"_blank\">Business Insider<\/a><br>Berger, who helmed a profitable mortgage desk at LMR, had generated nearly $250 million in gains during 2024. But in 2025, a levered strategy in U.S. residential MBS markets unraveled, erasing over $100 million in year-to-date gains and contributing to a 0.9% monthly loss for LMR.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.businessinsider.com\/hedge-fund-star-andrew-berger-leaves-lmr-mbs-trade-backfire-2025-10?utm_source=chatgpt.com\" target=\"_blank\">Business Insider<\/a><\/p>\n\n\n\n<p>The MBS market has become increasingly sensitive to interest rate dynamics, credit spreads, and borrowers\u2019 behaviors. Under heavy leverage, small moves can amplify losses. In this case, rate volatility and bond supply shocks appear to have caught the team off guard.&nbsp;<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-star-andrew-berger-leaves-lmr-mbs-trade-backfire-2025-10?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/p>\n\n\n\n<p>Berger joined LMR in 2022 from Credit Suisse and was widely viewed as a rising star in securitized-products trading. His exit is likely to prompt internal changes and revaluation of risk frameworks across the firm. Neither LMR nor Berger have provided public comment thus far.&nbsp;<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-star-andrew-berger-leaves-lmr-mbs-trade-backfire-2025-10?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/p>\n\n\n\n<p>This episode is a stark reminder of the risks inherent in niche, high-leverage strategies\u2014even in sophisticated multistrategy platforms. As yields shift and credit markets roil, hedge funds must continuously monitor tail risks in fixed income, especially in sectors that once seemed \u201csafe.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) LMR Partners, a $12.8 billion multistrategy hedge fund, has lost one of its marquee traders,\u00a0Andrew Berger, following a painful reversal in a mortgage-backed securities (MBS) trade.\u00a0Business InsiderBerger, who helmed a profitable mortgage desk at LMR, had generated nearly $250 [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,16042,16,3],"tags":[11708],"class_list":["post-90826","post","type-post","status-publish","format-standard","hentry","category-activist-funds","category-hedge-fund-performance-2","category-hedgeco-networks-press-releases","category-hedgeco-news","tag-hedge-funds"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=90826"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90826\/revisions"}],"predecessor-version":[{"id":90827,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/90826\/revisions\/90827"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=90826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=90826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=90826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}