Everyone knows that it’s been a very good three years for Paulson & Co., which burst on the scene in 2007 with triple-digit returns betting against subprime mortgages. Now, however, the New York-based firm has the hardware to prove it.
Paulson’s Credit Opportunities Fund took the top spot in the annual Barron’s Top 100 Hedge Funds list. Barron’s ranks funds by their three-year compound annual return, which left the $4 billion Paulson credit fund well clear of the field at 122.92%.
Second-best was barely half as good, with Balestra Capital Partners’ eponymous fund earning an annualized 65.63% over the past three years. Renaissance Technologies Medallion fund came in third at 62.8%, followed by Element Capital at 45.02% and Providence Investment Management’s MBS Offshore fund at 44.29%. Odey Asset Management’s OEI Mac fund was sixth at 41.78%.
In addition to taking the top spot, Paulson is also the only firm with two funds in the top 10, which its Paulson Advantage Fund—which was first in the Barron’s ranking last year—falling to seventh place with a 41.31% annualized return. The Paulson International fund also made the list, rounding out the top 30 with a 20.23% annualized return.
Structured Portfolio Management’s Structured Servicing Fund came in eight place with a 39.8% annualized return, followed by Shumway Capital’s SCP Sakonnet Fund at 36.9% and Pivot Capital Management’s Global Value Fund at 33.63%.
In addition to Paulson, four other firms had multiple entries on the Barron’s 100. Like this year’s winner, BlueCrest had three funds in the top 100, although none in the top 10. Odey Aseet Management, Shumway and SPM had two apiece.
The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.