Meet The Hedge Fund God Who's Up 34% YTD While Everyone Else Is Getting Smoked

Deepak Narula

Photo: CNBC screenshot

Bloomberg News Jody Shenn, Kelly Bit and Pierre Paulden report that former Lehman Brothers trader Deepak Narula’s hedge fund is absolutely killing it this year.  Narula’s $1.4 billion Metacapital Management, which specialises in mortgage backed securities, is up 34% YTD, according to the report.

Five years ago, Metacapital was too early with its subprime short and it ended up returning investor capital. He would have made money then if he held on longer. 

He’s doing just fine these days. 

In July 2008, Metacapital launched its flagship Mortgage Opportunities Fund.  It’s up 500% in four years, the report said.

Here’s what we know about Narula.  

  • He was a managing director at Lehman Brothers heading two mortgage-backed securities trading desks. 
  • He joined Lehman in 1989 and left in 2001.
  • In 1993, 1994 and 1995 he was ranked in Institutional Investor’s All-America research team when he was working in mortgage research and strategy at the investment bank.  
  • He has a Ph.D. in management science from Columbia. 
  • He has taught classes at Columbia Business School.  
  • He has a degree in electrical engineering from the Indian Institute of Technology (IIT)
  • He’s a speaker at the SALT conference in Singapore. 

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