Bloomberg- Hedge fund manager John Devaney, who had to sell his yacht and jet plane last year after wrong-way bets on mortgage securities, says it’s time to buy bonds backed by subprime loans.
The chief executive officer of United Capital Markets Holdings Inc., who lost more than 35 percent for at least one client last year and prevented investors from withdrawing their cash, says bonds derived from subprime mortgages are a bargain after falling as low as 10 cents on the dollar. TCW Group Inc. and Pacific Investment Management Co. are also betting that prices will recover.
"Just because I lost money doesn’t mean I will quit, no way," Devaney, who sold his boat "Positive Carry" and Gulfstream IV, said in a telephone interview from Key Biscayne, Florida. “Prices have collapsed and this is the best opportunity I’ve seen in my career.”
