Who says there's no money in government work?

Former Federal Reserve Gov. Jeremy Stein has agreed to consult for the hedge fund BlueMountain Capital Management, the fund announced Tuesday.

Stein, who is a Harvard economics professor, served on the Fed's board of governors from May 2012 to May 2014.

"[Stein] has been widely recognized by leaders in government, academia and the private sector for his talent and impact," BlueMountain Chief Executive Andrew Feldstein said in a press release. "His experience, research interests and intellect will add real value to BlueMountain's investors."

In January, BlueMountain disclosed that it held a short position in the stock of embattled mortgage servicer Ocwen Financial and an affiliated company, Home Loan Servicing Solutions. BlueMountain has alleged that Ocwen is in default on certain notes the hedge fund holds because its servicer ratings were downgraded last year by Moody's Investors Service.

BlueMountain manages approximately $20.6 billion of assets.

The firm's recruiting has attracted attention before. Managing partner Jes Staley was hired in 2013 from JPMorgan Chase, where he spent 30 years in various jobs including investment bank chief.

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