and he was dead right on the general idea which was contra to the accepted thinking. he was extremely creative in his trade and his conviction in the trade was certainly correct. and he was not dead wrong on the timing. he was pretty perfect on his timing with the ABX shorts. i think he shorted it like a month before new century began it's restatements. also, i just looked and it looks like he was underwater for about 6-8 months. i don't think he was almost washed out of the trade either. if you have stuff that states otherwise i would like to read it.
Actually, you're right. I just re-read the article. I saw this and just assumed "Housing remained strong, and the fund lost money. A concerned friend called, asking Mr. Paulson if he was going to cut his losses. No, "I'm adding" to the bet, he responded, according to the investor. He told his wife "it's just a matter of waiting," and eased his stress with five-mile runs in Central Park."