The Queen's Walk Investment Trust run by hedge fund Cheyne Capital Management has recouped £475,000 from companies it claimed mis-sold its loans linked to UK mortgages.

1. What the US can learn from Cheyne Capital Management’s Queen's Walk<br /> <br />Much of the financial media’s focus this week was on Goldman Sachs, US hedge fund Paulson & Co, America’s regulator the SEC and problems with complex mortgage-related instruments. <br />It ignored the fact one London-based hedge fund is tackling its own problems with debt instruments very effectively. The Queen's Walk Investment Trust run by hedge fund Cheyne Capital Management has recouped £475,000 from companies it claimed mis-sold its loans linked to UK mortgages. It has done this by encouraging – ‘forcing’ might be a better description – those who gave false representations or warranties about the instruments to buy them back. In February it succeeded in selling back loans linked to Portuguese properties, comprising 8.5% of its assets. Stuart Fiertz, Cheyne’s co-founder, describes QWIL’s conversations with mortgage salespeople as “robust”. One shudders to think just how robust. He says: “Where we feel there have been material misrepresentations of the products to us, we will discuss with the mortgage originators about their repurchasing them from us. “The conversations can be robust, but it is important to have them, and we will continue doing so where opportunities arise.” QWIL manager Shamez Alibhai says taking action is also important for shareholders. The trust is saving its investors as much as its mortgage sales contacts the embarrassment of newspaper headlines, as there has been precious little media coverage of this. The negotiations have been behind closed doors. And there have been no court cases for QWIL.<br />Read the full original Queen's Walk article<br />