Saturday, 20 December 2014
Last updated 1 day ago
Dec 6 2011 | 1:05pm ET
Crawling towards the finish line of its worst year ever, Paulson & Co. is ending 2011 the same way it has spent almost all of it: losing money.
Following a turnaround that proved short-lived last month, New York-based Paulson returned to its losing ways in November. The firm's largest hedge fund, Advantage Plus, lost 3.6% on the month, leaving it down 46% on the year with just one month to go. Its flagship advantage fund, less levered than Advantage Plus, lost 3.3% last month to increase its 2011 loss to about 32%.
Firm founder John Paulson has already apologized for the poor performance which, barring the most improbably positive December in hedge fund history, will end his four-year streak of double- or triple-digit returns. Positive returns, that is.
Paulson's other funds aren't doing much, or any, better than its main funds. Paulson's admittedly premature Recovery Fund is down 28% on the year after losing another 4% last month and his merger arbitrage Paulson Partners Enhanced Fund is down 18% after dropping 0.6% in November. The firm's Credit Opportunities Fund is also down 18% on the year, having dropped 3.6% in November.
Investors in Paulson's Gold Fund and gold-denominated share classes are doing less poorly. The former rose 1.3% last month and is up 11% on the year. The latter are not doing so well, but they are doing much better than Paulson's dollar-denominated funds. Advantage Plus' gold share classes is down only 29% on the year, Advantage's 13%, Recovery's 12%, and Partners Enhanced 0.9%. The gold shares of Paulson's Credit Opportunities Fund are actually up 0.3% on the year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.