Paulson Hong Kong Specialist
Paulson Hires Hong Kong Specialist after Sino-Forest Losses
How do you bounce back from a heavy loss on a Chinese company? By hiring a Hong Kong specialist. At least that appears to be what John Paulson is thinking after his biggest hedge fund got burned by a Chinese forest company, Sino-Forest.
John Paulson said he will hire a specialist in Hong Kong for his $37 billion Paulson & Co. hedge fund after losses tied to Sino-Forest Corp., according to two people briefed on the matter.
Sino-Forest, the Chinese forestry company accused by a short-seller of overstating timberland holdings, accounted for 2.5 percentage points of the 11 percent decline in the firm's biggest fund in June, Paulson, 55, said on a conference call with investors yesterday, according to the people.
The hedge fund, previously the largest investor in the stock, sold the entire stake last month after Sino-Forest shares fell 71 percent in two days. Paulson said the remaining losses in his funds were mostly related to macroeconomic developments that have been difficult to predict, such as the European debt crisis and negotiations about the U.S. debt ceiling, said the people, asking not to be identified because the fund is private. Read more
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