Tuesday, 21 October 2014
Last updated 3 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...