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November 14, 2007
Paulson & Co: Don't Go, Subprime! Don't Go!
Good piece in Marketwatch on two hedge funds that have done well taking the other side of the subrime bet. Both Paulson & Co. (run, ironically enough, by an ex-Bear guy) and Scion bet that the lowest quality subprime mortgages would see higher defaults than anyone expected; both have done so well that you can be sure they're chanting "Don't go! Don't go" in front of their Bloombergs.
How well have they done? Well, Paulson & Co. is up a staggering 435% in the first nine months of 2007, an astounding figure for any fund, but double-astounding for a firm running $24-billion in assets.
Both Paulson and Scion now say they are winding down some of their negative bets in residential mortgage-backed securities, and they're moving on to bets against corporate debt. Good to know.
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Paulson & Co. recently devoted $15 million to setting up a "Center for Responsible Lending" whose mission seems to be to hype the subprime "crisis" (and kill future mortgages to low-income families). Since the for-profit side of that team has been shorting mortgage lenders, the nonprofit Center appears a bit suspect.
does anyone know how to invest in Paulson&co fund?
Paul only manages Hedge funds,you basically have to be a millionaire and he can handle your personal portfolio..
does anyone know how to invest in Paulson&co fund?