Devaney Jumps Back In To Subprime Bonds

Feb 4 2008 | 12:54am 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.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…