We have to say, we never expected to see these two names lumped together — one a dazzling hedgie who made a mint on the housing collapse, and the other a longtime bull who got crushed in the financial collapse — and yet…
The NYT reports on the plight of the “contrarians”:
At a time that fear-stricken hedge funds are stocking up on gold, retail investors are fleeing the stock market in droves and gloom-peddling economists like Nouriel Roubini are commanding the airwaves, putting forward a bullish view for stocks can be lonely, dispiriting work.
But for investors like John A. Paulson, the hedge fund executive that made billions by betting on a housing crash, Bill Miller, the mutual fund manager at Legg Mason best known for his 15-year streak of beating the S.&P. 500, as well as a few others, all that presents an opportunity.
For what it’s worth, we don’t think Bill Miller should be characterised as a contrarian. He’s steadily bullish, always long, and usually thinks stocks are a great buy.
That being said, Paulson and Miller both are struggling to return to prior glory, and probably feel they have something to prove.
The piece also profiles hedge funder Michael Hintze who sees the possibility of an “upcrash,” whereby stocks surge, merely because of the overwhelming negativity.