Paulson loses $500m on Chinese forester Sino

Paulson fund loses $500m on Sino stake Veteran hedge fund investor John Paulson has lost $500m through selling his entire holding in Sino Forest, a Chinese forestry company fighting fraud allegations, the FT reports.

Sino Forest faces a series of accusations by short seller Carson Block, and represents a high-profile setback for Paulson & Co’s founder, as his hedge fund struggles with recent poor performance. “Due to the uncertainty over Sino Forest’s public disclosures and financial statements, we have sold our stock and await the results of the independent committee’s investigation,” Paulson said in a statement. Today Fitch Ratings cut Sino Forest’s long-term foreign currency issuer default rating and senior unsecured debt rating to BB- from BB+ and put the ratings on negative watch, saying the ...