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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Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.