Faultlines appear in hedge funds' onshore/offshore debate

A LINE IN THE SAND

Last month it emerged the world's third largest hedge fund, Paulson & Co, is coming to Europe.

Founder John Paulson is making himself available via a Ucits fund later this year. Investors rejoice! Why? Because in 2007 he made what is reputed to be the most successful wager by a hedge fund, when he punted on US sub-prime collapsing, which it did to spectacular effect. Back in November 2007 - 10 months before the sub-prime woes became a full-blown banking crisis which Paulson profited nicely from, too - he said the crisis was "not over yet, and worse could be to come". He made about 589% and 351% in his two Credit Opportunities hedge funds that year, and pocketed a multi-billi...