United Development Funding IV Responds to Hedge Fund Attack
United Development Funding IV 1 hour ago GlobeNewswire
GRAPEVINE, Texas, Feb. 08, 2016 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF IV” or the “Trust”) (UDF) released the following statement from its Chief Executive Officer, Hollis M. Greenlaw, on its websitewww.udfiv.com:
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
“On February 5, 2016, after launching a website containing multiple false and misleading statements about our company and management team, a Dallas-based hedge fund has confirmed they have built a significant short position in UDF IV.
We direct you to our initial response filed with the SEC on December 14, 2015. As is clearly detailed in our regulatory filings, our secured loans are underwritten based on collateral value, and UDF IV has not had any realized losses in its portfolio. We are confident that we have appropriate policies and procedures in place to ensure accurate financial reporting and compliance with all applicable rules and regulations.
The hedge fund acknowledges on its website that they will profit if the stock price of UDF IV falls, and given this financial incentive we believe the hedge fund intends to continue disseminating misleading information. We remain focused on protecting investor value through the preservation of our portfolios, and we will defend our funds aggressively against these unfounded accusations.”
For a copy of this statement, please refer to the Trust’s website at www.udfiv.com.