Tuesday, 30 September 2014
Last updated 2 hours ago
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%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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