What: Shares of mortgage insurer PMI Group
So what: Like fellow mortgage insurers MGIC Investment
Now what: This doesn't come out of the blue for Omega -- the company already had a sizable stake in MGIC. And John Paulson and his firm had already disclosed a stake in PMI. Savvy investors, though, will find their own reasons for taking a shot on these beaten-down insurers. Watching what the "pros" do can point you in the right direction, but it's nearly always a bad idea to just blindly follow their moves.
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