Hedge Funds

John Paulson still bearish on financials, economy

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John Paulson, president of Paulson & Co., said it’s still “too early” to invest in distressed financial stocks, though he set up a fund earlier this year planning to do just that.

Paulson, who was a keynote speaker at the fifth annual Absolute Return Symposium in New York, spoke on Thursday, the second day of a stock market rout that turned into the biggest two-day drop since the Great Depression. As big bank stocks continued to sink perilously close to oblivion, Citigroup lobbied for reinstatement of the short sale ban and searched desperately for another way to infuse capital