A hedge fund run by Greg Lippmann, the former Deutsche Bank trader who made billions betting against sub-prime mortgages and was a key individual in Michael Lewis' 'The Big Short,' is now profiting from buying up cheap assets in the same sector whose catastrophic failure he once foretold.

Lippmann, who reportedly made $2bn for Deutsche Bank during the crisis with credit default swaps on doomed mortgage-backed securities, launched LibreMax Capital in October last year.