Saturday, October 8, 2011
Paulson falls into his own trap
Reuters) - Hedge fund manager John Paulson lost more money in September thanks to ill-timed bets on an elusive economic recovery that left one of his biggest funds off 47 percent, two people who saw the numbers said on Saturday.
Paulson & Co, one of the world's five biggest hedge funds, released the numbers to investors late on Friday just hours before many on Wall Street headed off for a holiday weekend.
The Advantage Plus fund, which uses some borrowed money to help boost returns, tumbled 19.35 percent last month, leaving it off 46.73 percent for the year, the firm told clients.
Comment: Some time ago at this blog we wondered how Paulson could fall into the trap of following the mainstream clap. Too late, now. Another one that bites the dust, and correctly so, because the clap trap of the media is so much b.s. than rarely before, and before there was a lot of b.s. Now, the assault against sound reasoning from academia and the media brings down even some of the best minds.