Tuesday, 23 September 2014
Last updated 3 hours ago
Sep 22 2011 | 1:58am ET
Can John Paulson catch a break? Just when it seemed that Paulson & Co. might have turned a corner, rallying in the last days of August to cut its huge losses on the month, the firm—which has suffered more than its fair share of reversals this year—suffered another.
The battering of Alpha Natural Resources yesterday won't compare in magnitude for Paulson with its losses on financial stocks or on Sino-Forest Corp., whose implosion cost the firm more than $500 million. But it is another hit for a hedge fund that certainly doesn't need anymore.
ANR shares fell 22% yesterday after a rival warned that steelmaking coal output would disappoint. If Paulson still owns the 3.4 million shares in the company that it owned at the end of June, it lost more than $15 million yesterday.
It could have been worse: Paulson slashed its stake in ANR by two-third during the second quarter, The Wall Street Journal reports. But it could also have been better: The hedge fund built its stake in the first quarter—and AMR stock has fallen by more than 60% since the start of the year.
Paulson's main funds are down by double-digits 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 McKitich, CIO of Petty 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…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.