Paulson Canadian Retail Fund Revived

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%.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note