Devaney Jumps Back In To Subprime Bonds

Feb 4 2008 | 1:54am ET

Subprime mortgage-backed bonds have not been good to high-living hedge fund manager John Devaney. But in spite 30%-plus losses last year, Devaney is going to try, try, try again.

The United Capital Markets Asset Management chief said it’s time to buy subprime-backed bonds again. The collapse of the subprime market, which forced Devaney to restrict redemptions in his Horizon ABS Fund, has made them a bargain; some are selling for as little as 10 cents on the dollar.

“Just because I lost money doesn’t mean I will quit, no way,” Devaney told Bloomberg News. “Prices have collapsed and this is the best opportunity I’ve seen in my career.”

The losses last year hit Devaney hard. He was forced to sell his 142-foot yacht and his private jet.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of