Wednesday, May 19, 2010

"Big Short" Paulson Now Going "Big Long"

CNBC -- John Paulson, the hedge fund manager who reaped billions from the infamous ‘Big Short” against the subprime housing market and the American financial system, is now increasing his bet on their recovery, according to recent filings.

The manager of $29 billion at New-York based Paulson & Co. added to his Bank of America stake last quarter, bringing his total holdings in the TARP recipient to 168 million shares. He also increased his stake in Hartford Financial, the insurance firm whose exposure to AIG and Lehman Brothers caused its shares to plummet during the credit crisis, from about 3 million shares to more than 12 million. The hedge fund manager, who counts Citigroup among his three biggest holdings, even bought a new stake in a homebuilder, picking up 5 million shares of Atlanta-based Beazer Homes.

“Once again he’s going for the biggest bang for his buck by betting on areas that people hate,” said Pete Najarian, co-founder of OptionMonster.com and a ‘Fast Money’ trader. “The guy is betting on the big beta stuff.”

HT: Mike LaFaive

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