Paulson Suffers $2 Billion In Redemptions

Jul 9 2010 | 1:23pm ET

Are investors abandoning Paulson & Co.? Some are, but some investors are surprised there aren’t more.

The New York-based hedge fund paid out about $2 billion in redemptions at the end of June, AR magazine reports. The firm, which has been buffeted by poor performance in the second quarter and been dragged into the Securities and Exchange Commission’s fraud lawsuit against Goldman Sachs—although Paulson has not been charged with any wrongdoing—now manages $30.9 billion.

The firm had managed $33.1 billion at the end of the first quarter. In addition to the redemptions, Paulson’s flagship Advantage hedge funds lost 8.8% and 5.8% in the first half, while its Recovery and gold funds are up 9% and 13%, respectively.

The losses and redemptions are among the first missteps for a firm that burst on the scene in 2007 with triple-digit returns betting against the subprime mortgage market. Paulson has continued to post big returns, but the muted response to the rough stretch surprised some investors.

“The redemptions are lower than I would have personally expected,” one fund of hedge funds that invests with Paulson told AR.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...