Oxford Funding Corp. Forms Hedge Fund

HOUSTON--(BUSINESS WIRE)--Oxford Funding Corporation (OTC:OXFD) has formed a hedge fund which will invest in discounted portfolios of residential and commercial mortgages.

“The Fund gives Oxford Funding another vehicle and another opportunity to profit from disruptions in the current mortgage markets,” said Ron Redd, Oxford’s CEO. “There is presently so much opportunity in the market; we want to capitalize on as much as possible.”

Last week Oxford announced that the 2007 annualized rate of return on its portfolio of loans exceeded 90%.

The Fund will invest in performing, sub-performing and non-performing mortgages purchased on the secondary market at substantial discounts to face value. The Fund’s strategy will be to hold, modify if necessary, and ultimately liquidate the mortgage assets at significant gains. The Fund and its investors will participate in the yields generated during the holding period, and from gains on the sale/liquidation of the mortgage assets.

“This will give us the ability to buy more and make more than we have done to date,” said Robert Dunn, President of Oxford Funding. “The Fund will take us to the next level in terms of the type and size of portfolios we can buy,” he stated.

Oxford Management Capital, LLC (owned by OXFD) will manage the Fund, and will receive a management fee and a percentage of the profits that the Fund generates.

Investments in Oxford Opportunistic Mortgage Fund, L.P., a Delaware Limited Partnership, will be marketed to accredited investors via a private placement memorandum. Filings for the investment vehicle have been made with the Securities and Exchange Commission and the Texas State Securities Board with the filing of a Form D.

“With giant companies like Freddie Mac (NYSE: FRE) announcing a quarterly loss of $2.5 billion and Fannie Mae (NYSE: FNM) reporting a $3.6 billion loss for the same period and UBS (NYSE: UBS) warning of an estimated $14 billion loss and Fidelity National (NYSE: FNF) announcing $44.9 million in fourth quarter losses we expect to continue the favorable returns we’re experiencing…there is an amazing opportunity to pick up tremendous profit,” Mr. Dunn concluded.

About Oxford Funding Corporation:

Oxford Funding Corporation is a publicly traded asset resolution company specializing in the purchase and management of bulk mortgage loan portfolios. Senior management at Oxford has facilitated rehabilitated loan sales in excess of One Billion Dollars, traded billions of dollars of financial assets as principal and agent, and has established relationships with hundreds of financial institutions and loan investors nationwide. For more information, please visit our homepage at www.oxfordfunding.com.

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