Wednesday, July 25, 2007

Subprime lender CompuCredit's nearly $90 million "tied up" at Horizon hedge fund which has blocked withdrawals: NY Post

Interesting reading. "CompuCredit will have to settle for only a percentage of its cash coming back. "

A remarkable comment near the bottom of the article: "Other investors biting their fingernails over the fate of Horizon include several hedge funds that invested with the fund as a way to park excess cash for several months." Now that's a first for me. I had no idea that anyone in their right mind would "park" excess cash in a highly volatile vehicle such as a hedge fund. A rule of thumb for sane investors: Do not expose short-term money to market volatility! If the intent was a deliberate short-term commitment of funds to that investment, while considering other investment opportunities, then, well...




LENDER'S $90M HIT IS ON 'HORIZON' | By RODDY BOYD | Business News | Financial | Business and Money

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