Surprise! It’s John Paulson.
Sadly, this is actually not a surprise at all. Paulson simply has too much market exposure in some of his funds and as the market has tumbled downwards, he’s gotten hit big time.
First it was financials.
Unbelievably, Friday brought yet another hit to John Paulson’s portfolio: HP, which was getting crushed all day (more on that here).
The WSJ estimates that he could be down around $500 million.
The hedge fund manager is down around 34% YTD in one of his funds and the latest blow, courtesy of HP, which is down 20% currently, means he could lose more by the next time he reports returns to investors.
We’ve been getting updates on Paulson’s horrible performance almost bi-weekly, so anticipate some news of even uglier returns soon. Especially if HP continues getting sold off.