What if, at the beginning of 2011, you could have hired a Goldman Sachs banker to create an instrument that would allow you to short a specific hedge fund? It could have been quite profitable:
“John Paulson, the billionaire who is betting on an economic recovery by the end of 2012, lost 11 percent in the first week of August in his largest hedge fund, according to a person familiar with the firm.
The decline leaves the Advantage Plus Fund, which tries to profit from corporate events such as takeovers and bankruptcies, down 31 percent since the start of the year, said the person, who asked not to be named because the fund is private.”
Source: SF Gate