A number of hedge funds that have shared their July results appear to have fared very well by placing bets against subprime loans and other risky debt, The Wall Street Journal reports.One fund that did exceptionally well in July is Hayman Capital Partners, up 60% in July and 240% year to date. “The availability of credit has disappeared, and there are $220 billion of [leveraged-buyout] loans that need to be financed,” said Hayman Managing Partner J. Kyle Bass. “It is going to smoke investment banks, and many more funds will be carried out.”

Balestra Capital Partners enjoyed gains of 28% last month and is up 80% for the year. Last year, when it first shorted U.S. housing and subprime loans, it lost 3.5%. But it stuck with its mission, which is obviously paying off now.

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