John Devaney Kept His Fund Alive Because He Wasn't Guided By Dollars And Cents

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As you know, United Capital Markets founder John Devaney announced that he'll be liquidating his Horizon hedge funds after they failed to meet margin calls from Deutsche Bank. Many of you are probably wondering-- what the hell took him so long? It was over a year ago that Devaney suspended redemption requests in the funds and was forced to put his beloved and comically named yacht, Positive Carry, up for sale, in addition to his 16-bedroom home in Aspen and his waterfront mansion in Miami. Then in September, after an unnamed bank seized 40 percent of the equity in Devaney's hedge funds, and his accountants and lawyers told him play time was over, Skipper still said no, I'm not ready to give up on these things. What possessed JD to forge on, despite hundreds of millions of (negative dollar) signs telling him it was time to pack it in? Insanity? A fundamental lack of understanding for how these things work ("The ATM spit me out an extra 20-- WILL THAT SAVE US?")? Post traumatic stress disorder developed after witnessing the terrifying event that was selling PC? None of the above. As Devaney told DealBook, "Other guys who are only looking at dollars and cents would have shut the fund down," he said. "I have battled it out to try to save all my investors."
Hedge Fund Manager Describes Rock Bottom [DealBook]

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John Thain Kept His Promise To Never Redecorate An Office To The Tune Of $10 Million Again

In February 2010, a year after he'd been fired from Bank of America Merrill Lynch for redecorating his office with $90,000 area rugs, $1,500 garbage cans, and $20,000 light fixtures, and just before he started his job as CEO of CIT Group, John Thain made a bold claim. "I think I'll keep my office exactly the way it is,"  he told Bloomberg TV. At the time, we went on record saying that there was no way Thain would stick to this pledge, because like any other junkie with a substance abuse problem-- in Thain's case, fabulous furniture-- he was at the stage of the recovery process when you have no idea how truly brutal and demanding the road ahead will be. You want to overcome the demons, and you'll certainly try, but you're naive enough to think that you're bigger than the drugs and it'll happen on the first attempt. We assumed that, like most fiends, he would relapse at least once or twice, especially considering the high risk environment he was about to go into, which was the hideous office of his predecessor at CIT, a place that had never met good taste. Today, however, we stand corrected. According to Fox Business News' Senior Interior Decorator Charlie Gasparino, who first rose to fame with his report on Thain's decorating spree at Merrill, JT has kept his word. "Sources tell the FOX Business Network that Thain’s new office is a low-key affair, far different than the $1.22 million renovated palace he had as CEO of Merrill Lynch that became the object of scorn during the financial crisis. ‘Lots of plastic and formica, and no expensive paintings or area rugs,’ is how one visitor described it to FOX Business. Gone are the $35,000 ‘commode on legs’ and $1400 ‘parchment waste can,’ according to one person with direct knowledge of the matter. ‘It looked like an insurance office…he seems to have learned his lesson,’ this person said.” He may have broken out in hives for the first three weeks, he may have wanted to rip the wallpaper down in a psychotic rage, he may have been serious when he came home after Day 1 and told his wife, "I may have to quit my job tomorrow," but, god damn it, he stuck to his promise and for that we should reward him. CIT GROUP CEO JOHN THAIN’S OFFICE LOOKS “FAR DIFFERENT” FROM MERRILL LYNCH OFFICE [FBN]