Liar Loan
Well-known member
Well, rather than threadjack the "Does Anyone Ever Read IHB Anymore" thread again, I thought I'd re-start this topic here. (To see the original discussion click here --> http://www.talkirvine.com/index.php?topic=1263.msg26083#msg26083)
An article in the WSJ highlighted the recent poor performance of John Paulson.
http://finance.yahoo.com/banking-budgeting/article/113655/paulson-fires-back-critics-wsj?mod=bb-budgeting
He's the guy that became a billionaire in 2007 shorting subprime mortgage securities. Due to the fame he received from this legendary bet, his assets under management temporarily rocketed to $38 billion making his family of hedge funds the 4th largest. (It just goes to show that many wealthy investors chase returns much like the small investor. By law, investing in hedge funds requires a $2.5 million net worth, excluding your primary residence.)
So let's check in on his fund performance shall we?
Wow... that sucks. They could have placed their money in an S&P 500 index fund and been down maybe 1% for the year. Now the exodus begins as these investors have until the end of the month to withdraw what remains of their principal and place it with "the next big" fund manager.
An article in the WSJ highlighted the recent poor performance of John Paulson.
http://finance.yahoo.com/banking-budgeting/article/113655/paulson-fires-back-critics-wsj?mod=bb-budgeting
He's the guy that became a billionaire in 2007 shorting subprime mortgage securities. Due to the fame he received from this legendary bet, his assets under management temporarily rocketed to $38 billion making his family of hedge funds the 4th largest. (It just goes to show that many wealthy investors chase returns much like the small investor. By law, investing in hedge funds requires a $2.5 million net worth, excluding your primary residence.)
So let's check in on his fund performance shall we?
Wow... that sucks. They could have placed their money in an S&P 500 index fund and been down maybe 1% for the year. Now the exodus begins as these investors have until the end of the month to withdraw what remains of their principal and place it with "the next big" fund manager.