Peter Holmberg from the Virgin Islands, sailing for San Francisco's Oracle Racing Team challenge for the America's Cup, demolished Kiwi skipper Gavin Brady from Italy's Prada Challenge in three straight races yesterday to win the Colorcraft Gold Cup on Hamilton Harbour.

It was the first time Holmberg had won the coveted trophy.

Premier Jennifer Smith and David Kinloch, president of Colorcraft Bermuda, presented the King Edward VII Gold Cup to Holmberg, together with a cheque for $20,000.

In the Petit Final to decide third and fourth place, American skipper Ed Baird defeated Sweden's Magnus Holmberg 2-0.

Sunshine alternated with clouds as the boats raced in a brisk north-easterly breeze on windward-leeward courses across the harbour. Holmberg, who has been on top of his game all week, turned on a masterful display before a big spectator fleet off the Royal Bermuda Yacht Club.

Paul Cayard, Director of Sailing for Oracle, raced as bow man and tactician for Holmberg and between them they dished out a tactical lesson to the young New Zealander and his crew. In the three races, Brady incurred four penalty flags as he fought unsuccessfully to take control of the match.

Three Prada team members, Brady, Carter Perrin and Sean Clarkson, all sailed for Cayard two years ago in New Zealand in the Louis Vuitton Cup challenger series for the America's Cup and Brady had promised on Saturday that they'd give their old boss a hard time.

But it was Cayard who was waving the protest flag yesterday and scoring penalties against his old crew.

"Gavin was a good opponent," Holmberg said. "We made a game plan for today. That's what Bermuda is all about - you look at the conditions, you look at your opponent and I think in our team we had a good group that could come up with a good game plan and it paid off for us."

Brady won the start of the first race and led up the first leg only to get mixed up with the boats in the other match. He had to execute a double tack to avoid Ed Baird and, slowed in his approach to the weather mark and ran afoul of Holmberg approaching on the right of way starboard tack. He was penalised by the umpires.

"We went in ready for a big fight but it went our way," said Holmberg. "That's all part of the game. The boats are there and we like it that way. Sometimes you get a bad break and sometimes you get a good one, but we'll take whatever we get."

In the second race it was Brady's turn to catch out Holmberg with a pre-start infraction. The Kiwi headed full speed for the line with Holmberg trailing but was two seconds early and had to return and restart. Holmberg sailed away and built a big lead that permitted him time to absolve himself with a penalty turn.

Two races down and on match point, Brady engaged Holmberg in a high speed chase at the beginning of the third race, the two boats dipping and circling through the anchored spectator craft for several heart-stopping minutes. As the shouting and protest flag waving wound down and the pair headed for the start line, the umpires were signalling two penalties against Brady. The New Zealander was forced to complete a penalty turn as soon as he started.

Trailing far behind Holmberg on the last weather leg, Brady attempted to ensnare his opponent as Holmberg ran for the finish while he was still sailing to the weather mark. The aggressive attempt earned him a third penalty and another immediate penalty turn.

"I knew it was going to be a tough match but we made some unforced errors and we paid for it," Brady said. "We had a lot of opportunities to be 2-0 up after the first two races. We were surprised at the umpire calls in the last race but that is the

nature of the game."

Describing the chase through the spectator fleet before the last start, Brady praised the behaviour of the local boats. "People in Bermuda are very accustomed to the sea and they had their anchor warps nice and tight and were accustomed to what we were doing. It doesn't always happen that way in other parts of the world. It's always nice sailing here."

The Swedish Match Grand Prix Sailing Tour announced new points standings in the eight-event $200,000 contest after the completion of the Gold Cup. Magnus Holmberg who won the first two events this year continues in first place but Peter Holmberg is now only seven points behind in second. Gavin Brady now has 32 points and has moved up from fifth to third. First prize in the annual contest is $60,000.

Full results, see Scoreboard