July 30, 2007
JustQuotes: Okay, So Perhaps A Wee Bit Of Schadenfreude For Some
“A hedge fund manager whose fund ran into trouble from the sell-off in securities backed by subprime mortgages is having to put his huge yacht up for sale, seeking $23.5 million. John Devaney, the CEO of United Capital Markets, a fund that specializes in buying and selling bonds that are backed by the mortgage payments, particularly adjustable rate subprime mortgages, has put his 142-foot yacht "Positive Carry" up for sale, according to a yacht broker's Web site.”
“Devaney told Money magazine this spring that despite problems that the loans cause for borrowers, the assets backed by them provided a good return for his fund. "The consumer has to be an idiot to take on those loans," he said. "But it has been one of our best-performing investments." But with rising delinquency and default rates in the sector, investors have been scared away from the assets lately, hitting those like Devaney who made a big bet on the investment.” (Fund manager's fun sailing away)
First Published: July 30, 2007 12:26 PM
Comments from "Plugged In" Readers
There's an old (perhaps apocryphal) story regarding Wall Street and yachts that's appropriate in this circumstance: A long time ago, a visitor from out of town came to a tour in Manhattan. At the end of the tour, they took him to the financial district. When they arrived at Battery Park, the guide showed him some of the nice yachts anchoring there, and said, "Here are the yachts of our bankers and stockbrokers." "And where are the yachts of the investors?" asked the naive visitor.
Posted by: Mark at July 30, 2007 1:59 PM
Post a comment
Continue Perusing SocketSite:
« A High End Comp In The Making (The Four Seasons Residences #29F) | HOME | Eastern Neighborhoods Plan, It's Not Just For Policy Wonks Anymore »
