Paulson Got Too Bullish

Hedge fund manager John Paulson, who made a killing betting against subprime and housing in 2005-2008, has not been doing so hot lately. In fact, despite (or maybe because of) being advised by Greenspan, the only bright shining star in Paulson's portfolio this year has been his gold and gold-based holdings (such as miners). He was shrewd to bet on the recovery of bank stocks in 2009, but appears to have held on a bit too long, buying the "economic recovery" kool-aid. The analysis here suggests he is now lightening up significantly on bank stocks (such as Citigroup and Bank of America), so, look out below, folks.