John Paulson wasn't the only big investor to suffer a big hit because of the Sino-Forest mess.
The $30.8 billion flagship fund of Christopher Davis, the founder and head of Davis Funds, is also bleeding as a result of the decimation of the Chinese stock, Bloomberg reported.
Paulson owned 34.7 million shares as of April 29. Davis owned 30.9 million shares as of the same date.
So, if Davis held on at least as long as Paulson -- who told investors that losses may reach $750 million on the bad bet -- that makes him the second biggest loser on Sino-Forest, with potential losses of hundreds of millions.
Davis’s stake was worth about $725 million on April 29. That stake, if he still owns it, was worth about $63 million at the close of trade yesterday. His potential losses could be at least $660 million by that calculation, though one would assume they've divested some of the shares by this stage.
Davis "owned 13% of the Chinese tree-plantation owner as of April 29 through his... Davis Selected Advisers LP. The value of that stake has since dropped 92%, or more than $600 million" since Muddy Waters released its report saying the company was a fraud, as Bloomberg reported.
Davis New York Venture is down 0.7% through June 20, Bloomberg reported.
Davis joined Davis Advisors in 1989, a firm his grandfather had established in 1969. He earned an M.A. from the University of St. Andrews in Scotland.
Paulson has sold out of Sino-Forest. We're not sure if Davis has yet, the firm won't comment on individual holdings. If he's still holding, he's brave.
The Globe and Mail undertook "uncovered a number of glaring inconsistencies that raise doubts about the company's public statements regarding the value," and Carson Block said he's got more research on the way...
Sino-Forest is up this morning after hitting a low of $1.29 during the day yesterday; it's trading around $2.42.
Now Meet Carson Block: The Guy Who Has Cost John Paulson Millions >
