Devaney Shutting Down Hedge Funds: No Equity Remaining

Posted by John Carney, Jul 10, 2008, 8:12am

John Devaney's Horizon hedge funds failed to meet margin calls from Deutsche Bank and now is in the process of being liquidated. Deutsche Bank seized and auctioned off collateral, Devaney revealed yesterday in a letter to clients obtained by Bloomberg. The Horizon funds had held most of assets under management by Devaney's United Capital Management company. Last July Delaney suspended redemptions in the funds in an effort to avoid a fire sale of assets.

Devaney's strategy was to buy subprime-mortgage bonds and other asset-backed securities when the market turns against them, selling them later when they come back into favor. Devaney profited from buying suddenly unfashionable asset-backed bonds after the 1998 collapse of hedge fund Long-Term Capital Management. But markets can sometimes remain unfashionable longer than hedge funds remain solvent.

Devaney's Funds Wiped Out After United Capital Gets Margin Call [Bloomberg]

[Editor's note: An earlier version of this item misspelled Devaney's name, replacing it with the name of a grade school teacher at St. Joseph's Elementary School. Our apologies.]

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Comments

Posted by guest, Jul 10, 2008 8:46AM

Hey Carney, you smoking some of Jimmy Cayne's pot or what?

It is DEVANEY not DELVANEY. What's the deal with the extra L, huh?

Posted by guest, Jul 10, 2008 8:47AM

Any idea what the size of his fund at the peak was? No indication of how many billions we're talking about here.

Posted by guest, Jul 10, 2008 8:48AM

So now when he buys his yacht, does he call it "Negative Carry"?

Posted by guest, Jul 10, 2008 8:50AM

OMG,
Everyone, please read this fag's views on the market:
http://graphics8.nytimes.com/images/2008/07/10/business/Devaney.doc?biz

His spelling is worse than Carney's. He spells FundImentals. And he boasts about his 38th birthday.

Posted by guest, Jul 10, 2008 8:50AM

While buying up distressed ABS sounds really clever, levering up to buy them when we still don't know where the bottom is wasn't nearly as clever.

Posted by guest, Jul 10, 2008 9:04AM

"That's allright, another quaalude and she'll be mine again."

Posted by CNote, Jul 10, 2008 9:04AM

This guy's a complete smack-tard. He is, effectively, claiming to be a very good russian roulette player.

Thank god the chamber was full this time.

Posted by bank_teller, Jul 10, 2008 9:41AM

so funny -- Delaney, Delvaney, Devaney all in the same little piece. Juan Barney, you must be feeling like I do this morning.

-- Rank Feller

Posted by blndebnker, Jul 10, 2008 9:45AM

But markets can sometimes remain unfashionable longer than hedge funds remain solvent.


Way to try and lift a line out of the LTCM book, Carney. You should be ashamed!

Posted by mrpink, Jul 10, 2008 10:11AM

Go easy on JC fellas!

De/l,lv,v/aney is the guy we should be going after with FUNDIMENTALs

LOL

-mrp

Posted by mrpink, Jul 10, 2008 10:14AM

I wonder if Devaney does any techmical amalysis in his trades?

-mrp

Posted by John Carney, Jul 10, 2008 10:19AM

See what I get for trying to get posts up extra early for you people?

Just kidding. Thanks for the correction. My eyes were still glazed over, and no one was in the office to "copy edit" as I wrote that.

Posted by guest, Jul 10, 2008 10:32AM

Hey Carney @10:19

Do you really need interns to copy edit? Whatever happened to spell check, ya know.

haha no hard feelings dude. the joke's all on devaney now.

by the way carney, any updates on Spitzer's hooker and her beautiful tits?

PS: If you're interested in digging some shit up on Spitzer's family, then post back, I got some good stuff on his kids.

Posted by Finnegan, Jul 10, 2008 10:42AM

If only someone would offer to copy edit for you Carney. Hmmm.

Posted by blndebnker, Jul 10, 2008 10:53AM

What's starting base for a copy editor?

Posted by Finnegan, Jul 10, 2008 11:13AM

BB@10:53

According to payscale.com, it ranges from $30,400 (up to 1 year of exp) to $41K for 5 to 9 years experience. (Those are median national averages).

Posted by guest, Jul 10, 2008 1:58PM

his conclusions of the problems are "supply, bad fundamentals and fear". no wonder he lost it all - apparently he never really had it. this guy gives traders a bad name and gives those douches at leveraged sellout ammo to make themselves feel less douchey.

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