Â Friday, March 09, 2007
Without a doubt, this week’s “Asshat of the Week Award” goes to Tom Brown from Second Curve Capital, who also writes tons of fucktarded “bank-tardedness” at Bankstocks.com.
I know Cramer likes to polish this guys knob every chance he gets, but he is a one man wrecking ball– with regards to his fund. Tom has been uber bullish on the sub-prime lenders, recommending and owning shares of NEW and LEND, amongst others. In addition to the sub-prime death spirals, Tom is a big fan of high risk financial stocks, such as CCRT, FMD, NTBK, ECPG etc. Furthermore, he owns the fuckers in size.
On 2/28/2007, Tom recommended, with two pumped fists, LEND, exclaiming:
“Given the level of investor panic surrounding the sub-prime borrower lately, Iâ€™m feeling very greedy regarding sub-prime lenders these days, and am especially greedy over sub-prime mortgage lenders in particular. (One company among them stands out; Iâ€™ll get to it in a minute.) This is one of those times in investing, I believe, when it will pay to be very, very aggressive.”
Clearly,Tom has let old age deteriorate his brain, to the point where fucked up bank stocks “appear” to be good investments.
Also, it’s worth noting, his 800 million dollar hedge fund may be in jeopardy, providing his positions stay down.
I am not aware of his funds agreements, with regards to redemptions. However, I will say, if his partners are permitted to withdraw funds on a quarterly basis, Tom’s 800 million will be substantially less– come March 31st.
Trust me, people smell blood out there and will short the fuck out of his positions, if they knew Second Curve needed to liquidate, in order to meet redemptions.
It has been reported, due to Tom’s asshattery, that Second Curve lost over 8% in January alone and more than 18% in smaller funds. Moreover, according to some of the numbers I crunched, he may be down a staggering 16%+ (not including NEW!), inside two short months of the new year.
To clarify the mess, I had a spreadsheet with Tom’s positions, compiled. However, I do not know how many shares of NEW his fund owns.Considering the current state of NEW, I doubt Second Curve will release that information.
Click here for asshattery.
(spreadsheet of Second Curve’s positions)