Indianapolis Business Journal – Wall Street loves Conseco Inc.’s deal to get a $278 million shot in the arm from a New York hedge fund.

Shares of the Carmel-based life insurer soared as much as 26 percent, to $6.30 apiece, in morning trading after New York-based Paulson & Co. agreed to buy $78 million in Conseco stock and $200 million in company bonds.

Paulson chief John Paulson is well-known today for betting in 2007 that subprime mortgages would plummet. According to Bloomberg News, his main fund returned 37 percent last year, compared with an average 19-percent loss for hedge funds. Now he’s betting on financial firms, including Bank of America Corp., Goldman Sachs Group Inc. and now Conseco, to come roaring out of the recession.

Read Complete Article

Leave a Comment:

Name (required)

Mail (will not be published) (required)

Website

Tags:
fund-investment, hedge fund, hedge funds