In 1995, Robert Epstein established
Prophet Capital Management, Ltd.
(“PCM”) to manage investment
portfolios. In 1999, he established a
hedge fund, Partners in Prophet, Ltd.
(“PIP”), with PCM as its portfolio
manager.
In 2008, Mr. Epstein (as principal
owner) established Prophet Capital
Asset Management LP (“PCAM”) and
Prophet Capital GP, LLC (“PCGP”) as
its general partner. PCAM assumed the
role of portfolio manager of PIP in
2008. David Rosenblum was admitted
as a limited partner of PCAM in 2009.
Kurt Rechner was admitted as a limited
partner of PCAM in 2016.
PCAM, which is located in Austin,
Texas, is a Delaware limited partnership
that has been registered as an
investment adviser with the SEC since
2009. PCAM manages proprietary
hedge funds and closed-ended credit
funds, and also offers asset management
services to unaffiliated institutional
investors in the form of separately
managed accounts.
Our investment strategies primarily
focus on residential and commercial
mortgage-backed securities, CLO debt
and equity securities, and other types of
asset-backed securities, as well as,
agency and non-agency residential
mortgage loans, commercial real estate
mortgage loans, and other similar types
of structured assets. However, the
PCAM managed funds provide PCAM
discretion to invest in a broad range of
assets, including commercial debt and
publicly-traded and private equity
securities. We also provide advice
regarding commodities, real estate, oil
and gas interests, public securities, and
private equity where we deem such
investments are suitable for our clients.
Assets Under Management
As of December 31, 2023, we managed
approximately $2.6 billion in client
assets. Approximately $2.6 billion is
managed on a discretionary basis
(meaning that we make all of the
investment decisions for those clients).
Private Fund Clients
PCAM manages seven (7) proprietary
commingled funds (disregarding related
“feeder” funds). PIP and Prophet
Opportunity Partners LP (“POP”) are
hedge funds that focus on credit assets,
primarily real estate related. Prophet
Mortgage Servicing Opportunities TES
LP (“PMSO-T”) and Prophet Mortgage
Servicing Opportunities NES LP
(“PMSO-N”), each of which is a hedge
fund that holds pools of mortgage
servicing rights related to government
insured U.S. residential mortgages.
Additionally, PCAM manages closed-
ended funds (i.e., private equity-style
funds), which are Prophet Real Estate
Opportunities LP (“PREO”), a
commercial real estate credit fund,
Prophet EBO Master Portfolio LP
(“PEBO”), which holds pools of
government insured U.S. residential
mortgages, and Prophet MSR
Opportunities LP (“PMSRO”), which
holds pools of mortgage servicing rights
related to government insured U.S.
residential mortgages.
At this time, PIP, PREO, PEBO, and
PMSRO are no longer being offered and
are not accepting additional capital. We
can determine to sponsor new
proprietary funds, and cease offering or
even liquidate existing funds, from time
to time in our discretion, subject to the
funds’ governing documents.