Paulson Misses Out On October Rally

Oct 27 2011 | 6:46am ET

Paulson & Co. can't win for losing this year.

The New York-based hedge fund, burned badly by falling stocks all year, finally began cutting its exposure to equities—just in time to see the stock market rally this month, The Wall Street Journal reports. Paulson's decision to reduce risk in its funds means that the firm's largest fund, Paulson Advantage, which lost almost 47% during the first nine months of the year, is up less than 1% this month—while the Standard & Poor's 500 Index is up almost 10%.

The news couldn't come at a worst time for the $30 billion firm: Investors have until the end of the month to file redemption requests from its flagship Advantage and Advantage Plus funds, which are down between 30% and 47% this year after a brutal September.

Paulson has enjoyed an enviable track-record of double-digit returns over the past four years. But the firm will have to almost double investors' remaining money in November and December to simply break-even this year.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note