Money managers under the microscope
Hedge fund manager John Paulson, who made a fortune currectly betting on the U.S. housing market collapse in 2007 and then the broader financial crisis last year, is starting to wield a Midas touch long associated with Warren Buffett.
Thanks to its bearish views, Paulson & Co over the past few years vaulted to the top ranks of the world’s largest hedge fund, multiplying its assets and earning Paulson a king’s ransom.
More recently, though, Paulson has been scooping up stakes in some beaten down companies. The latest winner: CB Richard Ellis. Earlier today the world’s largest real estate services firm said it sold $100 million of stock to Paulson & Co. Shares surged 15 percent on the news.
Investors are poring over his holdings with the same fervor they track investment moves made by Buffett, widely known as one of the world’s most successful investors.
Hedge fund managers may get a lot of stick in these troubled times, but there are some that more traditional investors may want to listen to.
The 53 year-old American, no relation of Hank, is having a good financial crisis. In 2007 he pulled off one of the most lucrative gambles in investment history — amassing a personal fortune of nearly $4 billion betting against the sub-prime mortgage sector.
from Global Investing:
As a fallout in emerging markets -- once hailed as a safe-haven from the global financial crisis -- gathers pace, asset managers are scrambling for newer markets.
What about North Korea? The Stalinist country boasts large untapped natural resources with deposits of gold, coal, zinc and other minerals. It has virtually no capital markets and its banks are all state-owned -- making it a true safe haven from the global financial crisis.