Wednesday, May 19, 2010

"Big Short" Paulson Now Going "Big Long"

CNBC -- John Paulson, the hedge fund manager who reaped billions from the infamous ‘Big Short” against the subprime housing market and the American financial system, is now increasing his bet on their recovery, according to recent filings.

The manager of $29 billion at New-York based Paulson & Co. added to his Bank of America stake last quarter, bringing his total holdings in the TARP recipient to 168 million shares. He also increased his stake in Hartford Financial, the insurance firm whose exposure to AIG and Lehman Brothers caused its shares to plummet during the credit crisis, from about 3 million shares to more than 12 million. The hedge fund manager, who counts Citigroup among his three biggest holdings, even bought a new stake in a homebuilder, picking up 5 million shares of Atlanta-based Beazer Homes.

“Once again he’s going for the biggest bang for his buck by betting on areas that people hate,” said Pete Najarian, co-founder of OptionMonster.com and a ‘Fast Money’ trader. “The guy is betting on the big beta stuff.”

HT: Mike LaFaive


5 Comments:

At 5/19/2010 11:56 AM, Blogger BxCapricorn said...

That was last quarter. You always here what big traders own in 13F's. If you knew his CUSIP, you could see his SEC Form 4's....and I bet he's long gone from this position. They always brag, after they've exited or are in the process of selling you "the bag". Same with Rogers, Faber, Soros, etc. When Main St hears about it, it's already old news. That's why they're rich, and we're suckers who watch financial TV.

 
At 5/19/2010 12:25 PM, Anonymous Kevin said...

Faber is a charlatan

 
At 5/19/2010 4:25 PM, Anonymous Anonymous said...

This was before the war on banks started back up so I'd be surprised if Paulson's kept so much of the banks this quarter.

The Administration didn't buy a clue from the hammering the market took last year when they were going after every industry out there. They started right back up again after the health care bill, and big shock, the market is getting beat down.

But hey, I guess running a good campaign qualifies them to try to control everything they can get their hands on.

 
At 5/19/2010 7:33 PM, Anonymous Anonymous said...

“Do your friends a favor. Tell them to “batten down the hatches” because there’s a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don’t need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won’t recognize the country. They’ll retort, “How the dickens does Russell know — who told him?” Tell them the stock market told him.”

Dow Theorist, Richard Russell

 
At 5/19/2010 7:38 PM, Anonymous Anonymous said...

“Bond market vigilantes have already woken up in Greece, in Spain, in Portugal, in Ireland, in Iceland, and soon enough they could wake up in the U.K., in Japan, in the United States, if we keep on running very large fiscal deficits. The chances are, they are going to wake up in the United States in the next three years and say, ‘this is unsustainable.”

- Nouriel Roubini

 

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