Paulson Hits Jackpot With Sub-Prime Shorts

Apr 2 2007 | 10:23am ET

Paulson & Co. made a killing in the first two months of the year as the sub-prime mortgage market was hemorrhaging.

The firm’s Paulson Credit Opportunities fund returned a whopping 83% in January and February, buoyed by its bet against U.S. sub-prime mortgage lenders. The fund’s assets now exceed $500 billion, Financial News reports.

The fund was up 21.3% in February, according to an investor letter and Securities and Exchange Commission filings. Four of its funds made a net gain of 61.5% by shorting sub-prime lenders.
After the boom, Paulson manages some $11 billion, $6.4 billion of which is in hedge funds.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…