John Paulson
made the “greatest trade ever” against the subprime mess, netting $15
billion of profits for his firm and sealing his spot as top hedge fund
manager. Impeccable timing is everything. Any hedge fund managers may
have the best investment idea, but it may not be able to pull off the
trades as markets can remain irrational a lot longer than you and I can remain solvent.
His
subsequent trade idea on long gold since 2009 has not paid off, just
like his initial short on the housing market through CDSs. The debacle
in gold has lost Paulson $1 billion in just two days. Yet, he is still
sticking with his guns, on his conviction that the only asset that would
hold value is gold against government’s continuing printing of money.
Read more here: Articles by Hedgie
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