Paulson and Co. Forced to Reveal Their Short Positions in UK Banks
John Paulson, the hedge fund manager who made a name for himself after betting heavily against the US housing market, was forced to reveal his company's short positions in certain UK financial stocks this week. This was part of the new set of rules that were enacted by the Financial Services Authority in the UK over the past month.
The new rules bar companies from initiating short positions in certain publicly listed financial companies in the United Kingdom. Those who wished to retain their existing short positions were forced to publicly disclose the companies that they had the short positions in, as well as the size of the positions.
Paulson & Co. revealed that they had a 1.2% short position in Barclays, a 1.8% short position in Lloyds TSB and a 1% short position in both the Royal Bank of Scotland and HBOS.
John Paulson rose to the top of the hedge fund world after guiding his Paulson Credit Opportunities Funds to a massive year in 2007. A couple of the funds under his management were reported to have gained as much as 350-600% in 2007, making Paulson an instant billionaire. Paulson and Co. is reported to have an estimated $33 billion dollars under management, due in large part to their banner year in 2007.
Paulson is often quoted in the mainstream media due to his incredibly successful bet against the US housing market. With short-sellers made out to be the scapegoats during this current economic crisis, it will be interesting to see if the media still turns to John Paulson for his insight on the credit markets.
Filed under: Hedge Fund News | The Economic Meltdown