Deer Park Credit Gets Big Boost From Distressed Consumers; Sees Value In “Frenzied” Credit Markets

Mortgage-bond investor Deer Park Road Management's flagship STS Master Fund is having a blow-out year.

According to a copy of the firm's August month-end letter to investors, a copy of which has been reviewed by ValueWalk, for the year to the end of August, Deer Park Road's Master Fund had gained 17.3% year-to-date, outperforming the Credit Suisse Hedge Fund Index, which returned a paltry 4.9% over the same period.

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This year's rebound is a reversal in fortunes for Deer Park's leading fund, which has struggled in recent years. Despite racking up an annualized return of 24.5% since its 2008 inception to mid-2016, the fund gained 8.8% for 2015. While that...