Paulson Funds Plummet In Post-Earthquake Volatility

Mar 18 2011 | 1:28pm ET

The crisis in Japan has hit Paulson & Co. hard.

The hedge fund giant has suffered big losses in two of its funds as global stock markets have taken a beating in the wake of the massive earthquake and nuclear disaster in Japan. Paulson's flagship Advantage Fund lost 6.14% in the first half of March, wiping out its year-to-date gains and leaving it down 5.29% for 2011. The firm's Paulson International Fund dropped 2.25% during the first two weeks of March, cutting its year-to-date gain to 0.21%, MarketWatch reports.

It is unclear how this week's market rallies have affected Paulson's positions.

Japan suffered a 9.0 magnitude earthquake on March 11, killing at least 7,000, with more than 10,000 people still missing. The tremor, about 80 miles off of the country's northeast coast, caused a destructive tsunami and inundated parts of the country as much as six miles inland. Japanese officials say over 100,000 buildings were damaged or destroyed, including at least three nuclear reactors.

The Man Group today said it had donated $1 million from its charitable trust to relief efforts in the country.

"We have all witnessed through TV coverage the scenes of devastation in Japan after the earthquake and tsunami," CEO Peter Clarke said. "It is hard to imagine how this feels to those affected. Our long-established and close relationship with Japan means that we are naturally very anxious to play our part in joining with local and international efforts to alleviate the huge suffering that has been caused."

The firm's Tokyo office will coordinate its response; all of the money has been earmarked for charities benefiting Japanese children.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...