The Wall St Journal writes that Mother Market giveth, and she taketh away. Three hedge-fund lions who feasted during and after the financial crisis thanks to big bets against the housing market, now are facing some well-publicized stumbles. Here is the rundown.
John Paulson:Paulson famously scored a $20 billion profit betting against subprime mortgages and financial stocks tied to housing in 2007 and 2008. Now, as Deal Journal colleague Greg Zuckerman writes, Paulson’s $9 billion Advantage Plus fund is down nearly 20% for the year. The troubles? His holdings of financial stocks, which have taken a beating this year, and a so-far unfortunate investment in Sino-Forest, a Chinese timber company facing questions about its financial health. (Paulson’s bet on gold, however, is still working.)
Steve Eisman:The man made famous by the Michael Lewis book, “The Big Short,” for his supreme bearishness about the housing market, is leaving his troubled hedge fund to start his own firm, the Journal recently reported. His Financial Horizons fund returned 81% in 2007, but his large financial services fund has fallen about 14% over the last year-and-a-half.....
Fascinating! Read out more at:
http://blogs.wsj.com/deals/2011/06/15/big-comedown-for-trio-who-got-rich-on-housing-shorts/
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