Hedge funds led by Paulson & Co. and Maverick Capital are piling into mortgage insurers in a bet that some of the companies worst hit by the U.S. housing crash will be among the biggest winners in the rebound.
Lee Ainslie’s Maverick Capital Management LP, Steve Mandel’s Lone Pine Capital LLC and Ricky Sandler’s Eminence Capital LLC are beating global markets in 2012 as most stock hedge funds underperform for a fourth straight year.
Moore Capital Management LP and Maverick Capital Management LP bought Citigroup Inc. shares as the bank’s board grew dissatisfied with Chief Executive Officer Vikram Pandit’s performance, eventually ousting him.
John Hussman runs a $6.3 billion mutual fund with the flexibility to bet on rising and falling stock prices. His fees are a fraction of those charged by so- called long-short hedge funds that do the same thing, and he’s making more money for investors this year.
U.S. higher-education stocks fell 48 percent from April to October last year as the federal government proposed tighter regulation and short sellers led by hedge-fund manager Steve Eisman targeted for-profit colleges.