County Sells Troubled Investment Recovery Exceeds Target Amount
(Santa Ana, CA) — The investment pool managed by the County of Orange has sold its last investment related to its holdings of Structured Investment Vehicles (SIV’s), recovering more than 90% of an investment that went into receivership.
The original investment of $80 million in a Structured Investment Vehicle known as Whistlejacket was made in 2007. The troubled Whistlejacket investment went into receivership in February 2008 and was restructured under the name of Serpentine Funding Limited. County investment managers have been carefully monitoring the investment since March 2010 with a goal of recovering 90% of the original investment.
Over the last month, with improvements in the European banking situation and domestic markets, a conclusion was reached that a 90% recovery was possible. A combination of distributions from the Receiver and Serpentine along with the sale of Serpentine has allowed the County to recover 90.5% of the original investment. “A 90.5% recovery on an investment that went into receivership is a significant achievement that resulted from careful monitoring and planning by our investment staff,” said Bob Franz, Deputy County Executive Officer/Chief Financial Officer.
The County’s combined investment pool is approximately $5.8 billion. Currently, there are no SIV’s in the County’s portfolio.