Paulson's Biggest Fund Loses 20% In 2011

According to reports in Reuters, Paulson & Co.'s Advantage Plus hedge fund is down around 20% for 2011 after losing 13% in the first two weeks of June. The fund was hit hard by the implosion of Sino-Forest (PINK:SNOFF), which has lost 83.66% in the last month, after a short-seller's report accused the company of fraud. Paulson was the company's largest shareholder.

Also weighing on performance has been Paulson's big bet on financial stocks, which thus far, has been a disaster. At the end of the first quarter, the hedge fund had big stakes in Bank of America (NYSE: BAC), Citigroup (NYSE: C), Capital One Financial (NYSE: COF), and SunTrust Banks (NYSE: STI). None of these stocks have worked out in 2011, and BofA and Citi have racked up substantial losses. Another sore spot for the fund is its exposure to homebuilding stocks, which have also plunged in 2011.