Tuesday, 22 July 2014
Last updated 21 hours ago
Jul 26 2010 | 1:38pm ET
Paulson & Co.’s proposed Canadian retail hedge fund is back on track, three months after its launch was shelved.
Propel Capital Corp., which hoped to sponsor the listed fund, is working on bringing the initial public offering to fruition, Dow Jones reports. The Propel Multi-Strategy Fund could debut as soon as this summer or in the fall.
Propel cancelled the IPO in April, after the Securities and Exchange Commission accused Goldman Sachs of defrauding investors in a collateralized debt obligation allegedly structured and marketed on behalf of Paulson. While Propel never directly blamed the SEC lawsuit for the delay, and while Paulson itself was never accused of any wrongdoing, sources told Dow Jones at the time that investors had expressed concern about investing in a Paulson-linked fund until the Goldman case was resolved. Earlier this month, the case was resolved, with Goldman agreeing to pay $550 million to settle the charges.
The fund had commitments of about C$40 million before Propel delayed its launch. It is designed to give investors access to Paulson’s Lyxor/Paulson Advantage Fund and Lyxor/Paulson International Fund. It also plans to buy shares of a gold exchange-traded fund to reflect John Paulson’s bullishness on the precious metal.
The Goldman case may be resolved, but investors may still be skittish about Paulson. The $30 billion firm, which had enjoyed a remarkable run of success since posting triple-digit returns in 2007 betting against subprime mortgages, has taken a beating this year, with its flagship funds down almost 9% and 6%.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…