Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
One hedge fund that stumbled - subprime holdings
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC84873E0%2D3B92%2D4931%2DA56B%2DC30774F8F7F8%7D&siteid=mktw&dist=nwhpm
SAN FRANCISCO (MarketWatch) -- Second Curve Capital, a $500 million hedge-fund firm run by Tiger Management alumnus and former top bank analyst Thomas Brown, has had a tough start to 2007 partly because of trouble in the subprime-lending sector.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC84873E0%2D3B92%2D4931%2DA56B%2DC30774F8F7F8%7D&siteid=mktw&dist=nwhpm
SAN FRANCISCO (MarketWatch) -- Second Curve Capital, a $500 million hedge-fund firm run by Tiger Management alumnus and former top bank analyst Thomas Brown, has had a tough start to 2007 partly because of trouble in the subprime-lending sector.
The Second Curve Opportunity Fund, a smaller fund that takes more risk, was down 10% in January after jumping 54% last year, Barclay's data show.
Some of Second Curve's largest holdings at the end of 2006 continued to decline in February, suggesting that the hedge-fund firm has suffered more losses this month.
CompuCredit Corp., a subprime lender that specializes in credit cards, auto loans and payday advances, has lost more than 20% so far this year. Declines have been particularly sharp during the past week. CompuCredit was one of Second Curve's largest holdings at the end of 2006, according to a Securities and Exchange Commission filing.
Second Curve also owns shares of New Century Financial Corp. and Accredited Home Lenders Holding Co. two subprime-mortgage lenders that have been hit hard this year. New Century is down 50% in 2007, while Accredited is off 18%.
The stocks are not listed as holdings in the firm's year-end SEC filing. However, another filing on Feb. 9, said that Second Curve owned 8.5% of Accredited. Since that date, shares of Accredited have dropped almost 15%.