Paulson Funds Cut Losses In October

Nov 4 2011 | 11:39am ET

Paulson & Co. rode last month's stock-market rally to pare its huge 2011 losses, the worst its ever seen.

The $30 billion New York-based firm's flagship Advantage Fund rose 4.7% last month—one in which the Standard & Poor's 500 Index advanced 11%—to cut its year-to-date loss to 29%. A larger, more levered version of the fund, Advantage Plus, returned 2.4% on the month and is down 44% on the year, Bloomberg News reports.

The gold-denominated versions of both funds did better in October, with Advantage rising 8.3% (down 12% YTD) and Advantage Plus 3.3% (down 27% YTD).

Indeed, all of Paulson's fund's posted positive returns in October, just a month after its miserable September, its worst month in a year filled with bad ones.

Paulson's hard-hit Recovery Fund, which has been betting on firm founder John Paulson's belief that the elusive economic turnaround is just around the corner, soared 10% last month to reduce its year-to-date loss to 25%. The gold version of the fund rose 13% (down 11% YTD).

Paulson Partners Enhanced jumped 3.3%—the gold shares rose 7.3%—leaving it down 17% on the year. But the gold version is down just 1.6%, the third-best of any Paulson fund behind his dedicated Gold Fund, which is up 9.4% on the year after rising 8.3% last month.

Paulson's Credit Opportunities Fund returned 4.9% in October and is down 15% year-to-date. The gold version rose 7.5% on the month and is up 2% on the year.

Despite the overall awful year suffered by Paulson, investors in the Advantage funds filed redemption requests totaling less than 8% of assets at the end of last month, the deadline for year-end withdrawal requests.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note