National

Several Florida-based hedge funds wiped out

Several hedge funds run by flamboyant Key Biscayne trader John Devaney that were worth more than half a billion dollars last year have been wiped out, leaving wealthy investors with nothing. Zero.

About 150 investors -- some of them his Key Biscayne neighbors -- have lost roughly $510 million, said Devaney, chief executive officer and senior portfolio manager for United Capital Asset Management.

The collapsed hedge funds -- Horizon Fund, Horizon ABS Fund, Horizon Fund III and Horizon ABS Master Fund -- invested in junk bonds.

These high-risk debt securities have lost the vast majority of their value during the yearlong credit crunch that has sapped demand for most bonds that do not have AAA credit ratings.

Read the complete story at miamiherald.com

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