More evidence of the folly of the follow-the-herd mentality. A fascinating read appears in a recent article from the Wall Street Journal about low profile hedge-fund manager John Paulson. Paulson refused to believe the hype about the housing bubble, and bet against CDOs.
$15 billion for him and his investors. His first fund was up 590 percent in 2007. His second didn’t fare as well – only up 350 percent.