Sino-Forest Loses Paulson’s Support as Stock Plunges 89%
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Sino-Forest Corp., the Hong Kong-based tree-plantation owner that’s plunged 89 percent since being targeted by short seller Carson Block, lost the support of its biggest shareholder after Paulson & Co. sold all its stock.
John Paulson’s New York-based hedge fund, which made $15 billion in 2007 betting against U.S. mortgages, said in a regulatory filing yesterday that it sold all 34.7 million of its shares. Sino-Forest has fallen to an eight-year low in Toronto after Block, who runs Muddy Waters LLC, said June 2 that the company overstated its production.