Paulson Advantage Plus Down 31%

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.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

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.