Tuesday, March 13, 2007
Quick Alert: Tom Brown is Done
Last week's Asshat of the Week award, Tom Brown, is being eliminated from the world of money management today. Frankly, I do not like to see anyone do poorly, but he kind of had this coming.
Instead of betting on deadbeats with fucked up loans, he should have gone with the bigger money centers. Anyway, it's all hindsight now.
Nevertheless, according to my calculations, Tom is down a staggering 6% today! His fund is down, more than 24% YTD, with over 200 million in losses, so far.
Basically, his fund, Second Curve Capital, is likely to be liquidated. If not, I'd be fucking shocked and would offer to eat my tie, in an offering of humility.
If liquidated, his positions will be hit hard.
Here is a list of his bigger positions:
Instead of betting on deadbeats with fucked up loans, he should have gone with the bigger money centers. Anyway, it's all hindsight now.
Nevertheless, according to my calculations, Tom is down a staggering 6% today! His fund is down, more than 24% YTD, with over 200 million in losses, so far.
Basically, his fund, Second Curve Capital, is likely to be liquidated. If not, I'd be fucking shocked and would offer to eat my tie, in an offering of humility.
If liquidated, his positions will be hit hard.
Here is a list of his bigger positions:
| RNR |
| CCRT |
| FMD |
| FAC |
| SBK |
| PRS |
| MRH |
| COF |
| LEND |
| ECPG |
| NTBK |
| PRAA |
Comments:
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Is it possible that he hedged himself on the way down? I mean a good chunk of puts on his own holdings could have gone a long way.
# posted by 
: 1:43 PM
: 1:43 PM 
If he was running a naked long book, with no hedges, he deserves the asshat of the century award. Whether he bought puts, shorted the ABX or did something else, taking a 24% hit on the long side is going to leave a mark, regardless of how effective your hedge is. Investors just don't tolerate losses, he's toast.
The most startling thing about this entire post is that Fly wears a tie.
The most startling thing about this entire post is that Fly wears a tie.
... not to mention cologne. Although, the cologne could actually be errant BWLD sauce; there's no accounting for taste...;)
Broker - seriously, are you suggesting shorting some choicer dogs in Second's portfolio? Or just engaging in professional sympathy? ;)
Broker - seriously, are you suggesting shorting some choicer dogs in Second's portfolio? Or just engaging in professional sympathy? ;)
I just dicovered UPFC. It does sub-prime auto lending. I'm going to do some work on the name tonight. Anybody ever looked at it?
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