How Many Yachts Can John Devaney Water-Ski Behind?

The seas have turned decidedly choppy this summer for United Capital CEO John Devaney.

TheStreet.com has learned that the hedge fund manager has put one of his most prized possessions -- a 142-foot Trinity yacht dubbed Positive Carry -- up for sale, along with his $16.5 million second-home in Aspen, Colo. The house, called Sardy House, is the site of the nation's largest living Christmas tree.

A call to Devaney was not returned and officials at his Key Biscayne, Fla.-based hedge fund declined to comment. But according to Web site YachtCouncil.com, Devaney is asking $23.5 million for Positive Carry, which boasts a 42-inch retractable plasma screen with theater sound, a sun deck, an eight-person jacuzzi and barbecue area.

The motor-yacht's name is derived from a trade in which one borrows at low interest rates at the short end of the yield curve and invests at higher rates at the long end. How much the trader is asking for Sardy House -- an 1892 Victorian mansion that isn't believed to be named after any trading strategies -- couldn't be learned.

The moves come as subprime woes have dimmed the outlook for the Horizon family of funds managed by the United Capital chief. Devaney, famously the subject of an Institutional Investor profile entitled "Trading on the Edge," made his name as a hotshot, gun-slinging trader.

But a few months ago he bet wrongly that the ABX index -- used to hedge securities bets in the mortgage market -- would shake off jitters and see a pop. Instead it collapsed, leaving Devaney trying to bail out his funds.

After freezing redemptions in June, Devaney is still struggling to keep his investment vehicle afloat, as his investors are running for the exit. United Capital has assets under management of $620 million -- a good chunk of which has been frozen.

Positive Carry, pictured in happier times

Source: yachtcouncil.com