Another Day In Downtown Baghdad: CompuCredit Bombs

Jul.24.07 | About: Atlanticus Holdings (ATLC)

CompuCredit (CCRT), an Atlanta-based subprime lender, has nearly $90 million tied up in John Devaney’s United Capital Markets Horizon family of hedge funds, which suspended redemptions earlier this month.

...The ties between Horizon's Devaney and CompuCredit run deep. At one point, Devaney, his wife Selene and United Capital Markets controlled 5.36 million shares in CompuCredit, or nearly 10.6 percent of the company. On March 13, as CompuCredit's stock continued to drift downward into the $27 range from $39 at the start of the year, the company bought back 2.88 million shares from Devaney...

Lender’s $90m Hit Is On ‘Horizon’
by Roddy Boyd
The New York Post Jul. 24 2007

Y2K Finance Inc., a $2 billion London-based hedge fund, said its investments dropped 7.3% in June, according to a letter it sent investors. The fund blamed price drops on its holdings of U.S. subprime assets. Y2K is part of Wharton Asset Management, a $10 billion-plus London-based real-estate and hedge-fund operator.

Meanwhile, Old Hill Partners Inc, a $700 million Darien, Conn., hedge fund, was down 8.2% this year through May, according to people close to the matter. The firm hasn't yet told its investors about how it fared in June and July.

(NakedShorts has reviewed performance records of 10 Old Hill funds, through May 2007; details after the jump.)

Subprime Woes Push Up Bonds, Clip Hedge Funds
By Alistair MacDonald and Anusha Shrivastava
The Wall Street Journal Jul. 21 2007

Old Hill performance data: Eff. May 31 2007

Footbridge (Total assets: $311 million)
Footbridge Capital Fund Inc
YTD: -12.69 percent
Average annual return since inception (Jul. 1998): 8.93 percent.
Footbridge Capital LLC
YTD: -8.19 percent YTD
Average annual return since inception (Jan. 1998): 10.27 percent.

Opportunity (Total assets: $120 million)
OHP Opportunity Fund Inc
Assets: $86 million
YTD: -6.76 percent
Average annual return since inception (Jan. 2001): 11.96 percent
OHP Opportunity Fund LLC
Assets: $34 million
YTD: -6.47 percent
Average annual return since inception (Jan. 2001): 12.28 percent

Credit Arbitrage (Total assets: $36 million)
OHP Credit Arbitrage Fund LLC
Assets: $5 million
YTD: -0.20 percent
Average annual return since inception (May 2003): 11.46 percent.
OHP Credit Arbitrage Fund Inc
Assets: $31 million
YTD: -0.90 percent
Average annual return since inception (Jan. 2003): 11.75 percent.

Libor Plus (Total: $25 million)
OHP Libor Plus Fund LLC
Assets: $2 million
YTD: -10.19 percent
Average annual return since inception (Jan. 2004): 1.73 percent.
OHP Libor Plus Fund Inc
Assets: $23 million
YTD: -10.13 percent
Average annual return since inception (Jan. 2004): 1.73 percent.

Multi-Strategy (Total assets: $20 million)
OHP Multi-Strategy Fund LLC
Assets: $10 million
YTD: -6.21 percent
Average annual return since inception (Jan. 2005): 4.29 percent
OHP Multi-Strategy Fund Inc
Assets: $10 million
YTD: -5.3 percent
Average annual return since inception (Jan. 2005): 2.45 percent.