When your ship sets sail...

Regular readers of this blog will recall that a few weeks back I posted an item on how John Devaney, a Florida hedge fund manager who was one of the golden boys of the financial set (Devaney was flashy, and in many profiles was only too willing to pose aboard his 142-foot yacht, which he had christened “Positive Carry.”). His firm, United Capital Markets, had made a killing investing in mortgage-backed securities, with significant leverage, but when the subprime market collapsed, Devaney suspended redemptions by the investors in his fund to keep from having to dump his holdings in a falling market.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.