Wednesday, 20 August 2014
Last updated 5 hours ago
Apr 20 2010 | 1:43pm ET
Paulson & Co. has delayed the launch of a Canadian retail hedge fund following charges that Goldman Sachs defrauded investors in a collateralized debt obligation it set up for the $32 billion hedge fund.
Paulson announced plans for the new closed-end fund to be listed on the Toronto Stock Exchange in February. But the initial public offering has been delayed, despite having collected some C$20 million from investors since its preliminary prospectus was filed last month.
According to Dow Jones Newswires, it is unclear when or if the Propel Multi-Strategy Fund will be revived.
The fund was designed to give investors access to Paulson’s Lyxor/Paulson Advantage Fund and Lyxor/Paulson International Fund. It would also have bought shares of a gold exchange-traded fund to reflect John Paulson’s bullishness on the precious metal.
Paulson has not been charged with any wrongdoing in the Goldman case. But the Securities and Exchange Commission alleges that the hedge fund played an integral role in picking the residential mortgage-backed securities in the CDO in question, paying Goldman US$15 million to structure to vehicle, which it then shorted. Goldman is accused of misleading investors about Paulson’s role.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note