Sputtering Paulson Posts Further Losses

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.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.