Second Curve on the Brink

[HenryTo]

Not sure what their exact holdings are but I believe most of their portfolios are in equities:
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Berkshire profit rises 33 pct
Fri Aug 3, 2007 6:54PM EDT

By Dane Hamilton

NEW YORK, Aug 3 (Reuters) - Second Curve Capital LLC, the fund group managed by high-profile financial stocks investor Thomas Brown, has been hammered by ongoing problems in the subprime lending sector, where he has been outspokenly bullish in the past.

Four funds in the Second Curve portfolio are down between 38 percent to 42 percent in the year through July, according to investors who have seen the numbers.

The results reflect the travails of investing in the now-battered subprime lending sector, where dozens of companies have faltered in recent months and some have failed.

Second Curve's portfolio included such stocks as Accredited Home Lenders (LEND.O: Quote, Profile, Research), First Marblehead Corp. (FMD.N: Quote, Profile, Research), Primus Guaranty Corp. (PRS.N: Quote, Profile, Research) and Ocwen Financial Corp. (OCN.N: Quote, Profile, Research), according to regulatory filing in May 2007. All those stocks have slumped amid a fallout in the subprime sector.

Repeated calls and e-mails to Brown were not returned. It is unclear how much money the firm has under management.

Brown's funds include Second Curve Opportunity Fund International, which is down about 40 percent in the year through July. That comes after a mega-performance last year, when it was up 53.6 percent.

The Second Curve Opportunity Fund LP is down some 42 percent through July 31, 2007, but was up 54.3 percent in 2006, according to investors.

The Second Curve Partners International Fund is down 38.3 percent year-to-date, after being up 26.8 percent in 2006. And the Second Curve Partners fund was down 38 percent year-to-date, after being up 28.2 percent in 2006.

Brown was previously a top-rated bank stock analyst at investment banks including Smith Barney and Paine Webber. He currently runs an investor Web site called Bankstocks.com, where he shares his sometimes acerbic thoughts on financial companies and their managers.

[rffrydr]

Sometimes the best trades are those not taken:

http://www.marketthoughts.com/forum/contrarian-brown-bets-on-accredited-home-lenders-t3852,highlight,brown.html

Looks like Barrons got it right:

http://www.marketthoughts.com/forum/first-marblehead-fmd-t1496,highlight,brown.html
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