Paulson Preps Hedge Funds To Invest In Banks

Jul 23 2008 | 11:47am ET

New York hedge fund Paulson & Co., which made a killing on falling mortgage bonds last year, plans to do the same when the market rebounds.

The $33 billion firm is setting up a hedge fund to make long-term investments in financial services firms burned by the credit crisis and market slump, Bloomberg News reports. The new fund, for which Paulson has not set a fundraising target, may debut in December.

The Amex Securities Broker/Dealer Index is down 35% in the past 12 months, while the largest banks and financial firms have taken some $467 billion in write-offs related to the credit crisis. The new Paulson hedge fund would provide capital to those firms, aiming to profit on their resurgence.

Firm founder John Paulson, who saw several of his funds post triple-digit returns last year, told a Monaco conference that his firm hired professionals to research securities firms to see what sort of opportunity there might be for long-term investments.

“We’re trying to see the right entrance point,” he said. “If you invest too early, you lose money.”


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note