Paulson Feels The Pain In June

Jul 8 2011 | 1:15pm ET

June was exceptionally unkind to Paulson & Co., even for those funds that did not lose $574 million on a single investment.

The New York-based hedge fund giant saw all of its hedge fund lose ground last month, none more so than the Advantage Plus Fund, the $37 billion firm's largest. That fund dropped 11% in June—leaving its dollar-denominated share class down 18% on the year and its gold-denominated share class down 12%—primarily on the firm's disastrous investment in Chinese timber company Sino-Forest Corp., Bloomberg News reports.

Sino-Forest shares dropped by more than 80% last month after hedge fund Muddy Waters accused the company of overstating its timberland holdings in China's Yunnan Province. Paulson had owned 12.5% of the company but sold its entire stake after the Muddy Waters report.

Paulson's flagship Advantage Fund, which also owned Sino-Forest shares, lost a further 7.3% in June and was down 12% in the first half. The gold-denominated version of the fund lost 8.1% on the month, wiping out its small year-to-date gain and leaving it down 7% for the first six months of the year.

Paulson's other funds hardly did better. Its Gold Fund dropped 8.6% in June, also pushing it into the red year-to-date, down 7.9%. The firm's Partners Enhanced Fund fell 4.7% in June to cut its year-to-date returns to 6.1%; that fund's gold version lost 5.8% in June but is up 8.9% on the year.

The Paulson Recovery Fund fell 3.6% in June to slash its first half return to just 1.2%, although the gold version remains up 3.4% on the year after losing 5.2% last month. And Paulson's Credit Opportunities Fund shed 2.7% in June to cut its six-month return to 5%; the gold shares fell 3.9% on the month and are up 7.9% on the year.

All is not yet lost, of course: Paulson Advantage was down by double-digits as late as September of last year but finished 2010 up 11%.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.