Monday, 29 August 2016
Last updated 2 days ago
Sep 8 2011 | 1:50pm ET
Things look bad—very bad—for Paulson & Co. But, all things considered, they could be much worse.
The $35 billion firm's largest hedge fund, Advantage Plus, fell 15% last month and is down 34% on the year. And its flagship Advantage fund is down 23% on the year after falling 9.5% in August, Bloomberg News reports.
Last month's rout even wiped out one of Paulson's few bright spots, with its Partners Enhanced Fund taking a 7.5% loss, wiping out its year-to-date gains and leaving it down 5% on the year.
The good news? Paulson's funds were in even worse shape after the first three weeks of the month, before enjoying something of a rally. Advantage Plus had been down as much as 22% in August and 39% on the year. Its other funds also enjoyed something of a turnaround as August drew to a close.
Paulson's insatiable appetite for gold is the other good news. The firm's dedicated Gold Fund soared 18% in August and is up 21% in 2011. And clients who listened to firm founder John Paulson and invested in the firm's gold-denominated fund have managed to avoid many of the losses that have stricken their dollar-denominated fellow investors. Advantage Plus' gold share class is down by only half as much, 17%, as the dollar-denominated fund this year. The gold share classes for both Advantage and Partners Enhanced are actually in the black this year, up 1.4% and 15%, respectively.