Investors Sticking With Paulson—So Far

Oct 11 2011 | 1:11pm ET

Investors aren't racing for the doors at Paulson & Co. just yet.

Clients of the $30 billion New York hedge fund filed redemption requests totaling about 10% of the assets for two of the firm's funds as of the end of last month, in line with previous withdrawal periods. The two funds, Credit Opportunities and Recovery, manage about half of the firm's assets, Bloomberg News reports.

Most of Paulson's funds have been battered this year; Credit Opportunities is down about 18% and Recovery 31%. Paulson's largest fund is down 47% after losing about 20% last month—and redemption requests for that fund are not due until the end of this month.

Those withdrawal figures could offer a better glimpse at how investors are really feeling about Paulson. September was the firm's worst month this year—and requests for Credit Opportunities and Recovery were due before the full carnage was revealed to investors.

To date, Paulson has not been inundated with redemption requests. In any event, even a flood would not inundate the firm: About half of its assets belong to firm employees and staggered redemption periods mean that the most the firm would have to pay out by the end of the year would be about 20% of its assets.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR