Harbinger, Paulson & Hayman, Hedge Fund Stars of the Financial Crisis, Fall Back to Earth

May 29th, 2012
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Four years after making the biggest and most successful bet of their careers, yesterday’s hedge fund stars have found that success doesn’t necessarily beget success leaving investors to long for the old days. As reported by the New York Post, those hedge fund managers who, as a result of being on the right side of the housing crash in 2007, were vaulted into preeminence, now seem to be struggling for survival with their funds and returns falling back to earth.

Most notable is John Paulson whose flagship Paulson Advantage Fund lost 40% in 2011, largely due to his reverse bet Bank of America and Citigroup would lead the economy back to health. Paulson made almost $4 billion off his mortgage crisis bet in 2007.

Others, such as Phil Falcone of Harbinger Capital Management and Kyle Bass of Hayman Capital Management have placed their winnings on other horses to win. Phil Falcone put it on wireless startup, LightSquared, and lost, while Kyle Bass put it all on Japan’s default which he says has a 70 percent chance of paying off. Then there are a few, such as Andre Lahde of Lahde Capital who earned returns in the vicinity of 1000 percent and knew when to walk away. Lahde closed his shop in 2008.
For Detailed Investor Profiles on these Investors, click below:
HRG Group (Harbinger Capital Partners)
Paulson & Co.
Related People: Andrew Hoine; John Paulson; Mena Gerowin*; Mike Barr; Omar Asali (CEO); Peter Jenson (COO); Philip Falcone*; Sheru Chowdhry; Stuart Merzer
Related Entities: Harbert Management Corporation*; Harbinger Capital Credit Distressed BlueLine Fund; Harbinger Capital Partners Master Fund; Harbinger Capital Partners Special Situations Fund LP; HRG Capital; Paulson Advantage Master Ltd; Paulson Advantage Plus Master Ltd; Paulson Real Estate Recovery Fund; Paulson Recovery Fund; PCI
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Spotlight Reports; Hedge Fund Launches and Hedge Fund Closings

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