Bloomberg Businessweek

The Hedge Fund Curse of 2008

These managers made their reputations in the crisis and faded in the decade that followed

In the spring of 2008, hedge fund manager David Einhorn gave the most memorable speech of his career. At a conference in Manhattan, he took to the stage at the standing-room-only concert hall and delivered a scathing attack on Lehman Brothers.

Lehman filed for bankruptcy four months later. Around the same time, another New York hedge fund manager, John Paulson, was minting a fortune by betting against U.S. subprime mortgages. And in London, a firm run by a lower-profile manager, Alan Howard, had prepared for a financial crisis by cutting risk and buying investment contracts that would profit from market volatility.

You're reading a preview, sign up to read more.

More from Bloomberg Businessweek

Bloomberg Businessweek4 min readPolitics
Between A Rock And A Trade War
Gray concrete walls rise out of the Mediterranean off the coast of Haifa in northern Israel, part of what, by 2021, is supposed to be among the world’s most advanced class of seaports. The future shipping terminal, along with another being built fart
Bloomberg Businessweek2 min read
Life, Death, and Cooking
There are plenty of good books to curl up with as the seasons change. In the nonfiction category, those seeking creative inspiration should turn toNew Yorkerwriter Calvin Tomkins’s forthcoming collection,THE LIVES OF ARTISTS(Phaidon, Sept.25).It’s a
Bloomberg Businessweek3 min read
How to Make Money From Money-Losing Bonds
Currency hedging squeezes some extra return out of negative-yielding Japanese and European debt