Forbes – Trading the financial markets in 2011 was a humbling experience for many billionaire hedge fund managers. While some hedge fund titans managed to successfully navigate through the year, many big names stumbled. The biggest loser, however, was billionaire John Paulson.
A global economic recovery that many took for granted last winter crumbled in August, with the major stock market indices off their July highs by roughly 15%. Traders who panicked got burned by the volatility that defined the second half of the year, while those who bought each new low were handsomely rewarded. Those that simply stayed the course came out the other end relatively unscathed: the S&P 500 had turned positive by the end of the year and the Dow was up over 5%.
