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When Hedge Fund Losses Hit Home

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When Amaranth was blown to smithereens, we all had a good laugh about it. A fund lost $6 billion in one week because a brash young ichthyophile bet the wrong way on everything? That's hilarious. Plus: the genius trader and his boss really weren't affected, monetarily, as evidenced by the latter's chutzpah in threatening his investors not to sue him and the carefree attitude toward huge legal fees exhibited by the former. It's like Katrina, see-you can laugh about a disaster if no one got hurt. (I also challenge you to name one person who wouldn't pay to fulfill their childhood fantasy of having a sleepover in the Astrodome). LTCM? The tears are still streaming down our faces.
Today, however, our attitude toward the destruction of hedge funds took a hit. John Devaney, the United Capital Markets founder who recently suspended investor withdrawals on his $620 million hedge fund portfolios, has put his yacht up for sale. For John Devaney, "Positive Carry" wasn't just a boat. It was a big boat. And now, thanks to the markets, the god-damned markets, John Devaney is voluntarily stripping himself-at a starting price of $23.5 million-of his pride and joy. JD is also trying to get $16.5 million for his 16-bedroom house in Aspen, which he bought for $16.25 million in November.
Are you getting all this? A man is going to be without his yacht and ski lodge. All he's going to be left with are a Gulfstream jet, a waterfront mansion, and a helicopter.
There's an almost unbearable sadness about this permeating DBHQ. Carney's perma-glib has disappeared--he's been in the men's room, silent, for hours.
Disgusted With Hedge Funds? [thestreet .com]