Tom Brown's Second Curve Acquires Primus Guaranty Shares ~ market folly

Sunday, May 2, 2010

Tom Brown's Second Curve Acquires Primus Guaranty Shares

Tom Brown's hedge fund firm Second Curve Capital just filed a Form 4 with the SEC in regards to shares of Primus Guaranty (PRS). In the filing, we see that advisory clients of Second Curve acquired 35,000 shares of PRS at prices of $4.40 & $4.37. The transaction took place on April 27th & 28th, 2010 and Second Curve now owns 5,825,266 shares. As you can see, they added relatively few shares compared to their overall position. However, this is somewhat of a peculiar transaction because just two weeks ago we detailed that Second Curve sold PRS shares at a price of $4.42. So, we're not quite sure what's going on here but that's what the SEC filing states.

For more portfolio activity out of Tom Brown's hedge fund, we recently saw they filed a Form 4 on shares of Taylor Capital Group (TAYC) and we've also covered some other position updates as well. Brown's hedge fund focuses exclusively on the financial services sector. Prior to founding his own fund, he was in charge of the financial services group for Julian Robertson's Tiger Management. During the crisis, Brown was painfully early on his bullish call on the financials and it cost him dearly at the time.

Taken from Google Finance, Primus Guaranty is "a holding company, which conducts business through two operating subsidiaries, Primus Asset Management, Inc. and Primus Financial Products, LLC. Primus Asset Management is an investment manager to affiliated companies and third-party entities. Primus Financial Products, LLC is a credit derivative product company (CDPC)."

Those interested can also take a past look at Second Curve's portfolio.

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