The New Mexico pension fund will continue to invest in billionaire hedge fund manager John Paulson for now, the fund’s chief investment officer said Wednesday. Paulson gained national attention when he bet against the sub-prime bubble, but his firm is now experiencing huge losses
“„[Paulson] told investors on a call that he had been wrong on the timing of a recovery and had overconfidently bet that too many stock prices would rise, according to several people who listened in.
“„His main Advantage Plus fund has tumbled 47 percent this year while his Advantage fund cousin is off 32 percent, investors have said.
“„Paulson said that he might be forced to return as much as one-quarter of the firm’s roughly $30 billion, the investors who listened to the call said.