Tuesday, 5 May 2015
Last updated 13 hours ago
Aug 28 2012 | 12:17pm ET
Paulson & Co.'s problems with bank hedge-fund platforms will take a new turn today, when Bank of America financial advisers and clients are given a chance to vent at the hedge fund's founder.
John Paulson will participate in a conference call arranged by BofA. The call will give BofA's advisers and clients the opportunity to question Paulson, whose hedge funds are in danger of suffering back-to-back years with double-digit losses.
Paulson has relied on bank hedge-fund platforms to ensure a steady flow of new capital. But that strategy took a hit last week when Citigroup's private bank said it would drop Paulson from its list of approved hedge funds, a move that will likely lead to more than $400 million in redemptions.
The BofA conference call was scheduled prior to Citi's decision, according to published reports. What's more, BofA, which unlike Citi and Morgan Stanley has not put Paulson on watch, does not plan to change Paulson's status at this time.
The Wall Street Journal, which first revealed the conference call, reports that Paulson's interlocutors are expected to "express their concerns with the hedge-fund industry's recent returns, and press Mr. Paulson for answers on why his funds have underperformed."
Paulson's flagship hedge funds lost between 30% and 50% last year and are down between 13% and 18% this year.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…