John Devaney reponded to the New York Post‘s story about him being booed offstage at an investor conference by releasing a statement through his firm United Capital Markets. There was no booing, he says. But his fund isn’t doing very well; that part they got right.
Excerpts From UCM’s Statement: Most of the content in “Devaney Booed off Stage,” which appeared in this past Sunday’s (October 26th) New York Post, is completely false. There was no booing, nor did anyone leave the stage. This is totally fabricated. This type of false reporting is compounding problems that the finance industry is having in restoring confidence. Articles of this nature are placing the financial system at more risk by falsely attacking industry participants. We are one of the few dealers in the ABS/MBS community providing liquidity and making an effort to help the markets. The parts about my brokerage firm and asset management firm having troubles in 2007 and this year are true. The rest of your story is inaccurate.
What is improving people’s confidence in the finance industry? The fact that Devaney takes responsibility for the firm’s losses and apologizes to investors.
I am sorry for any investor who has lost money in any investment in the past 18 months. It has been a very tough environment for any investor who has been long the bond market in structured finance securities: RMBS, ABS, CMBS, and CDOs. These markets have crashed and the best “AAA” bonds are trading at 50 cents on a dollar and almost everything else at 10 cents or below. This market crash has unfortunately created large losses across a very wide spectrum of institutions and individuals.
All investors are accountable for their investment decisions. You could be at an investment bank, regional bank, prop desk, fund of funds, insurance company, hedge fund, or CDO manager and this still applies. It doesn’t matter who you are or what side of the fence you sit on; it is important to realise that if you or your investment committee “pulls the trigger” on investments or strategies that you remain accountable for the results.
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