Wednesday, 10 February 2016
Last updated 1 hour ago
Jul 10 2008 | 11:07am ET
A year after freezing redemptions amid highly-publicized losses in his hedge fund, John Devaney has thrown in the towel.
Devaney yesterday shuttered his Horizon Strategy and told his investors there was no money left, The New York Times reports. The final act began two weeks ago when Deutsche Bank made a $90 million margin call. When Devaney’s United Capital Markets Asset Management couldn’t repay, the bank seized the hedge fund’s remaining assets. In September, another bank demanded Devaney repay a loan, and then seized 40% of the equity in the fund.
“I’m devastated, I’m totally devastated,” Devaney told the Times. “I feel horrible that I’ve lost my own money and that so many people who saw the skills I have and trusted in us have now been hurt.”
Devaney said he has not received management fees since September, and has personally lost more than $150 million in his credit crunch-victimized fund. Over the past year, the losses at UCMAM have been punctuated by Devaney’s highly-publicized sell-off of some of his prized possession, including his 142-foot yacht, Positive Carry, a Renoir and a home in Florida.
Devaney said he did not shutter the fund last June—when he was forced to put the redemption freeze in place—because he wanted to try to turn things around for investors. Instead, they will be left with nothing.
“Other guys who are only looking at dollars and cents would have shut the fund down,” he told the Times. “I have battled it out to try to save all my investors.”
Devaney vowed that he plans to rebuild his business and reputation.