Wednesday, July 23, 2008

Paulson & Co. Plans Fund to Provide Capital to Financial Firms

From Bloomberg:
John Paulson, the money manager whose wagers against the U.S. housing market helped him earn an estimated $3.7 billion last year, is starting a hedge fund to provide capital to financial firms hurt by mortgage writedowns....

...``Paulson has significant knowledge of the subprime market that has created earthquakes for the banks,'' said Ron Geffner, who represents hedge funds at the New York-based law firm Sadis & Goldberg LLP. ``I expect that he understands their experiences, balance sheets and financial exposure better than many.''>>>MORE
How to Make $1.7 Billion in One Year
John Paulson made so many smart bets in 2007, one of the most-difficult years for this market that we've seen in some time, that he made $1.7 billion for himself for the year. No hedge fund was more successful in 2007 than Paulson's, which was up a whopping 435% for the year. Halfway through 2008, Paulson & Co. is striking again, up 26%, vs. -15% for the S&P 500....MORE

From Forbes:
One Paulson Gets It Right
Step aide, Warren Buffett. Shuffle off, George Soros. The new genius in investment management is hedge fund maven John Paulson, who is known for the billions he made shorting subprime mortgage paper during 2007.

Lucky are the well-heeled investors who have Paulson as their money manager this year. Prudently employing no leverage--that's right, no borrowed money--Paulson's funds are all up in 2008, some in the double digits. It's a shrewd and brilliant strategy in troubled markets that tripped up many of his hedge fund brethren who never reduced their dangerous levels of debt and have now closed up shop.

This Paulson, ranking No. 165 on our Forbes 400 list of richest Americans, is astute....MORE

Rich From the Fall, Richer From the Rise
Can the winning subprime trader John Paulson do it again on the way up?
Will the man who perhaps made the most money from the credit crisis make even more on its rebound?>>>MORE