Wednesday, 22 October 2014
Last updated 1 hour ago
Aug 10 2011 | 5:11pm ET
Paulson & Co.'s hedge funds are looking like blocks of ice in the August sun, melting more and more with each passing day.
The New York-based firm's largest hedge fund is down an incredible 31% this year after losing 11% during the first week of August. Advantage Plus had been down 22% through the end of July. The $35 billion firm's flagship Advantage fund is now down 21.5%, after losing 15% through the end of last month.
With those losses, Paulson will have to return about 45% over the last four-and-a-half months of the year to break even on Advantage Plus.
Things appear to have gotten worse this week, as financial stocks have taken a serious beating. Bank of America and Citigroup are among Paulson's largest holdings, and the figures do not include the market routs on Monday or today.
Despite the unfolding disaster, investors have filed withdrawal notices for only $430 million from the Advantage funds, which manage a total of $15.5 billion. That's less than the average quarterly redemption.
And firm founder John Paulson is doing a good deal better than those numbers would indicate. Paulson has most of his money in his firm's gold shares, which have greatly outperformed his dollar shares. And Paulson's gold fund is actually up 6% this year. Gold itself is up 23% this year.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...