John Paulson Seeks Big Fees While Risking His Money

[Scataphagos]

https://www.bloomberg.com/news/arti...bets-seeking-big-fees-while-risking-his-money

I believe this is the Paulson who made such big bank shorting sub-prime RE in ~2007.

Since then, he hasn't done so well.... losing about 70% of his AUM.

Now.... he's going the route of "Leveraged First-Loss".

If he does as well in the future as he has the last 10 years, we'll soon be considering him in the same light as Victor Niederhoffer.

Amazing.... He's got $Billions, and willing to risk most/all of it to remain in the public's eye as a big-shot money manager.

Just another example of his getting the reputation as an "all star" financial guy... when in actually he only made a big bet that turned out to be right. Doesn't make him a financial genius, obviously.

(The market has busted many "supposed super stars". And he's ever wrong for a 10% move while leveraged in a "First Loss" platform, he may well be bankrupted.)

A Lesson for all ETers... when YOU make it big, you still haven't won the game. You've won when you retire from trading/investing and you have a big bag of the market's money. Unfortunately, the odds are against.

 

[jinxu]

A Lesson for all ETers... when YOU make it big, you still haven't won the game. You've won when you retire from trading/investing and you have a big bag of the market's money. Unfortunately, the odds are against.

Speak for yourself. I know I don't bother going out seeking crap articles like this. Better things to worry about then some other trader's success/failure. Their success/failure does not mean my own, so why care? But I do remember I used to do it when I was still "learning". I think it's a fear avoidant mechanism. Something to read that makes you feel better in the dark. So I assume the same for you. Hehe.

 

[lawrence-lugar]

when YOU make it big, you still haven't won the game.

You've won when you retire from trading/investing and you have a big bag of the market's money.
Unfortunately, the odds are against.

That's generally true, I would agree.

Although it may look or seem easy or a breeze in hindsight,
Every profitable trade you walk away from...feels like you just Barely, luckily, divinely escaped with your life.

Some traders are absolutely huge, or have an endless appetite.
As soon as I reach my relatively modest and simple goal...I will either walk away, and/or play it much safer and easier and slower.

There's no point in scoring huge gains...only to linger in the dangerous market, leaving yourself exposed to potentially somewhat just as large, maybe inevitable, losses.
2018 ET,

 

[RedDuke]

First loss funding is a really bad idea at least for little shops, he is a billionaire so he plays by a different set of rules.