The New York Times and Institutional Investor report that several hedge fund managers made billions! from betting the right way on subprime securities.
A billion is a hard number to get your arms around for a year’s work. $3.7 billion! But, it was fair and they were the winners.
The real issue is: will they be around next year? Will they retire? Let’s give them a test and check on them next year on this date.
Since I’m thinking they’re lucky, I would advise them to retire. Soros retired and came back for another go and had a huge hit. This is his second time around since he sold the pound short in 1992 for a $1.1 billion win. He and his partner Jimmy Rogers, made an average of 42% from 1970 to 1980. Rogers retired in 1980. So maybe Soros is smart and I admire his courage and smarts. It would be wonderful if they continued to make their successes every year.
I’m marking my calendar now and we’ll check in on April 17, 2009 and see.
FOLLOW UP:
As reported in the Wall Street Journal on October 24, 2008, John Paulson is having another good year. His funds are up from 15% to 25%.
