Horizon Hedge Funds Freeze Redemptions

Jul 3 2007 | 11:42am ET

United Capital Markets is restricting redemption requests from its hedge funds in an effort to avoid being the next Bear Stearns.

United Capital’s Horizon Strategy hedge funds made “the defensive move because we had an unusually high number of redemption requests and we didn’t want to be a forced seller in this market,” spokesman Michael Gregory told Bloomberg News. One of the withdrawal requests came from an investor representing about a quarter of the Key Biscayne, Fla.-based firm’s $619 million in assets under management.

Like the troubled Bear, which is liquidating one fund and taking over $1.6 billion in secured loans for the other to keep it afloat, Horizon manager and United Capital founder John Devaney invests in sub-prime mortgages and other asset-backed securities. Its flagship, the Horizon ABS Fund, was down 5% in April and May after returning almost 40% last year.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note