10.12.11
Awesome hedge fund Fail
From the Financial Times, the most famous hedge fund man, John Paulson, reported as losing 6 billion on a gamble that a US recovery would occur. After making a fortune shorting “US subprime mortgage securities.”
John Paulson made his name in 2007 for the greatest trade ever. He may now be losing it, fear some, with one of the worst.
So far this year, Paulson & Co, the giant hedge fund Mr Paulson founded in 1994, has lost an estimated $6bn or so of his investors’ – and his own – money …
Mr Paulson’s current losses are a factor of a far less esoteric trade: a bet in which he wagered, at a greater scale than anyone else, that the US economy was on the road to rude health.
The FT piece then goes on to explain all the hedging Paulson’s firm is now engaged in to protect itself from further “market volatility.”