Traders are viciously anticipating John Paulson's liquidation of some of his holdings, according to the Wall Street Journal.
Paulson's returns have been terrible, and as the October deadline for investors to ask for redemptions inches closer, traders are avoiding his holdings in anticipation of big investor liquidations.
And in at least one case (Harrah's), when a Paulson holding hit the market, traders "reached out to brokers to see if they can buy more of it" -- a way to see if Paulson is liquidating, which would cause more of his holdings to sell off.
Billions in redemptions at Paulson & Co would cause him to sell of big chunks of stock because he doesn't own very many. That will hurt the stock price of those investments. So of course traders would want to anticipate this.
Read more at http://www.businessinsider.com/john-paulson-sells-lehman-debt-2011
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