Paulson Cuts Losses Slightly In Late August, Down 34%

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.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note