Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

John Paulson Misses Out on Rally, Predictions Correct

John Paulson has had a rough time of things lately. His largest hedge fund lost 47% in the first nine months of the year and now, the man that gained prominence after betting against the housing market seems to have had his bets on the wrong things at the wrong times.

largest hedge funds in the world

John Paulson Scales Back

John Paulson began to scale back his more bullish bets after posting the large loss, reports the Wall Street Journal. Paulson opted to ill back a bit after his “largest funds plunged in value this year amid high-profile, and poorly timed, bets on stocks such as Bank of America Corp., Hewlett-Packard Co., and China’s Sino-Forest Corp.” Paulson owned up to his mistake, telling shareholders that he made a mistake and should not have been running so exposed without the proper hedges in place. So, Paulson reduced his positions in American Capital, Ltd (ACAS) and others.

And Then There was a Rally

In the case of ACAS, Paulson filed his paperwork on October 4, 2011, but had begun selling off his interest in the company on September 27. Since October 4th, ACAS has returned 27.19%, profits Paulson lost out on. The market rallied. Bank of America (BAC) swelled almost 18% in the first 4 weeks of October, while Hewlett Packard Company (HOQ) jumped 20.22% in the same period. The Wall Street Journal reports that in spite of the losses, “Paulson remained bullish on equities, saying earlier this month that the U.S. economy was ‘chugging along’ and he was still optimistic that his funds would recover. He’s maintained the view that the stock market is cheap.” It appears Paulson may have been right. Unfortunately, “Now, as stocks have rebounded, Mr. Paulson is no longer as well-positioned to profit from the rally.”

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!