The hedge fund manager who achieved 900% returns during the subprime crisis has identified a new short-selling target.

Glonghui, June 25th｜During the global financial crisis, hedge fund manager Lee Robinson made a timely short bet on the US subprime mortgage market, turning a $20 million position into $200 million and achieving a return as high as 900%. Now, he believes risks are accumulating in the private credit sector and new opportunities have emerged. However, instead of directly shorting this sector, he is focusing on the potential secondary effects, shorting some of the largest backers of this $1.8 trillion market — insurance companies. Robinson is ramping up bearish bets against several companies using credit default swaps, including Lincoln National Corp., MetLife Inc., and even Berkshire Hathaway. Credit default swaps are derivative contracts designed to provide investors with default protection. His firm, Altana, is launching a new fund and will participate with its own capital to hedge what he sees as the inevitable downturn in private credit, a cooling AI boom, and the impact of declining liquidity on corporate valuations.