UDF Shares Tumble As FBI Raid Underway

HFA Padded
Mark Melin
Published on
Updated on

As FBI agents were raiding the offices of Texas-based United Development Funding (UDF), packing up a rental truck full of documents from the office in a potential Ponzi scheme investigation, J. Kyle Bass must feel a degree of satisfaction. As first reported in ValueWalk, Bass shorted the stock through his hedge fund, Hayman Capital Management, on suspicions of nefarious behavior at the firm and later, using the pseudonym “Investor for Truth,” published a report outlining the concerns. Trading in the stock of United Development Funding IV, which had fallen more than 50% in value, was halted today on the NASDAQ.  …

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.