Paulson Sells Sino-Forest!

Jun 20, 2011
J. Webster
Comments Off on Paulson Sells Sino-Forest!

Talk about getting crushed, Sino-Forest has turned out to be a complete disaster for hedge fund guru John Paulson, and now he’s bailed out on the stock entirely. CNBC has the details:

“Due to the uncertainty over Sino-Forest’s public disclosures and financial statements, we have sold our stock and await the results of the independent committee’s investigation,” a spokesman for Paulson & Co said in an e-mail on Monday.

While it wasn’t immediately clear how much Paulson lost on the sale, his 14.1 percent stake in Sino would have been worth C$897.4 million as of the end of March. The same stake would be worth just C$94.8 million at Monday’s closing price.

So, if you ever feel bad about losing money in the stock market, refer to this post. However, remember Paulson made billions of dollars shorting the subprime real estate market in 2007-2008, so he can afford a loss, even if it’s upwards of a billion dollars.

The debacle in Sino-Forest is of course due to a short trader from the firm Muddy Waters, who said Sino-Forest was a Ponzi scheme.

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