The rumor I always heard on Wall Street about Paulson was that he essentially stole the idea of the sub-prime short from other investors - but I have no idea if that is true.
Every bet he's made since has been terrible - I remember him being a part of the "hyperinflation" crowd buying up gold etc.
In general, this points out the flaws in both active management and hedge funds. For active management, we see that someone can have an amazing single year or event and then never perform again. For hedge funds investors, the sad story of the high fees and underperformance continues - it's a heads I win, tails you lose structure for investors imho.
Every bet he's made since has been terrible - I remember him being a part of the "hyperinflation" crowd buying up gold etc.
In general, this points out the flaws in both active management and hedge funds. For active management, we see that someone can have an amazing single year or event and then never perform again. For hedge funds investors, the sad story of the high fees and underperformance continues - it's a heads I win, tails you lose structure for investors imho.