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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note