Paulson Flagships Slide In July

Aug 7 2012 | 1:17am ET

Paulson & Co.’s second half is off to a rocky start.

The firm’s flagship hedge funds extended their year-to-date losses in July, leaving both down by double-digits for the year—and in danger of suffering their second consecutive down year. Pauslon’s Advantage Fund dropped 1.6% last month, and the more highly-levered Advantage Plus Fund 2%. The former is now down 13% on the year and the latter 18%, Bloomberg News reports.

And that’s only the beginning of the bad news for the $21 billion hedge fund: Its Gold Fund is down 23% this year despite a 0.2% bump in July.

“While the Advantage and Gold Funds’ performance is negative on a year-to-date basis, we believe substantial upside exists as our event catalysts unfold and the imbalance between record high earnings and low valuation corrects across the gold mining sector,” firm founder John Paulson wrote to clients.

Paulson’s other funds aren’t doing so badly; in fact, they are up on the year. Paulson Partners Enhanced added 1.3% in July and is up 5.4% on the year, and Credit Opportunities rose 0.9% on the month and is up 3.8% on the year. Paulson’s Recovery Fund, which is betting on an economic turnaround, is up 3.9% on the year despite a 0.8% drop in July.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of