Paulson Continues Risk Cuts

Nov 16 2011 | 10:46am ET

Despite missing out on October's stock rally due to its efforts to cut risk, Paulson & Co. continued to reduce its exposure during the first half of November.

Firm founder John Paulson told investors attending the New York hedge fund's two-day annual meeting at the Metropolitan Museum of Art that he's cut the net exposure of the firm's main hedge funds to 30%, half of what it was four months ago. Paulson told clients that he'd continue to reduce the firm's bullish bets until it becomes clearer that Europe will be able to sort out the sovereign debt crisis afflicting Greece and Italy, Bloomberg News reports.

Earlier this year, Paulson's largest funds, which have fallen 44% and 29% this year, had net exposure of 81%.

Despite the big losses, investors filed redemption requests totaling only 8% of assets at the end of last month, just one third of what they would have been allowed to pull and in line with what Paulson generally sees in year-end redemptions.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note