Paulson Event Fund Said to Plunge 14% in October

Paulson's event-driven hedge fund experienced a 14% decline last month, resulting in a 25% loss for the year. The fund, which focuses on companies involved in takeovers, spinoffs, or bankruptcies, faced significant challenges. Investments in Shire and preferred shares of Fannie Mae and Freddie Mac saw major declines. The Treasury's inversion rules further impacted the fund's strategy.

What types of companies do Paulson's event-driven funds typically bet on?

What impact did the Treasury's actions have on Paulson's investments?