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

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