One investor says founder John Paulson voiced his negative views in November and has been heavily shorting the ABX sub-prime index. The index measures the cost of insuring against defaults on sub-prime bonds.
Paulson is not alone in generating profit from the sub-prime market collapse. One investor says he knows of a hedge fund that put on a $2 billion trade in February, making $300 million in that month alone.
Andy Chow is a portfolio manager at SCM Advisors, a money manager located in San Francisco.
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