Paulson Thriving as Radian Proves Second Chances Work
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When Radian Group Inc. sold shares in 2010 to bolster capital, the buyers lost more than a third of their investment in just two months. The mortgage insurer’s offering in February, backed by money managers including John Paulson, is proving second chances can work.
Radian has rallied 76 percent to $14.07 since selling shares for $8 apiece as well as debt in February. Rival MGIC Investment Corp. has followed a similar pattern, slumping after a 2010 offering and surging 47 percent since this year’s $1.15 billion capital raise.