New York (HedgeCo.net) – According to a regulatory filing, Hedge Fund manager John Paulson’s of the $12.5 billion Paulson & Co. bought 300 million shares of Citigroup worth $1.45 billion. This move puts Paulson & Co. alongside other hedge funds such as Appaloosa Management LP who acquired 79.7 million Citigroup shares in the third quarter of 2009.
Bloomberg.com quotes Warren Marcus a former Salomon Brother analyst who is cautious about bank plays and speculates that banks may be less profitable going forward since they are using less leverage and will have to abide by stricter regulations. “You could make a case that you have to trim back what the returns will be at a well-run, normal bank because there will be a lot more pressure on them to be run conservatively,” Marcus said.
John Paulson is best known for his bet against financial companies before the credit crisis which some have speculated earned his firm as much as $15 billion in 2007.
Aaron Wormus
Contributing Writer, HedgeCo.net
news@hedgeco.net
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