Paulson Redemptions Lower Than Expected

Nov 2 2011 | 11:43am ET

Paulson & Co. clients are not, in the end, fleeing the struggling hedge fund in droves.

The New York-based firm told clients that they filed redemption requests totaling less than 8% of its roughly $30 billion in assets. The news came down only hours after what promised to be a spooky Halloween for Paulson—redemption requests for its two largest, and worst-performing, hedge funds were due on Oct. 31.

Paulson's Advantage Plus Fund was down 47% and its flagship Advantage Fund 30% through September, figures that didn't appear likely to get any better last month. Paulson founder John Paulson cut back on the funds' risk in October, missing out on the month's stock market rally.

In the weeks leading up to the redemption date, Paulson had warned that the firm could face withdrawal requests totaling as much as 25% of assets.

In the event, however, redemptions were actually lower than it typical sees during the end of the year. Paulson told clients that it was still calculating a final figure for net redemptions.

In the same letter, Paulson told clients that Harvard University economist Martin Feldstein has joined Paulson's advisory board, which also includes former Federal Reserve Chairman Alan Greenspan.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note