Some hedge funds hit by subprime meltdown

The subprime implosion has been phenomenal. Unsurprisingly, some hedge funds have fared well. Consider Paulson & Company, which started two funds to concentrate solely on such a meltdown. Its Credit Opportunities Funds were up more than 82 percent for the year. On the other side: Greenlight Capital, ended up with too many of shares in New Century Financial, which is basically trying to re-open the financial spigots from top Wall Street firms. Greenlight's founder, David Einhorn, served on the board but resigned yesterday. The stock has plummeted. A more dramatic tale, Scion Capital, which made some aggressive short bets and looked to be a huge loser until the market imploded just as investors were getting antsy. These are the sort of events that really make or break hedge funds. If you took no opinion on the situation, some would question whether you're really a hedge fund manager.

For more:
- here's a New York Times article