Friday, 22 August 2014
Last updated 8 min ago
Apr 26 2013 | 10:51am ET
With just a few days left in the month, it appears that April will be a lost one for Paulson & Co.
The New York-based firm's flagship Advantage Fund is down 2.4% on the month, Reuters reports. April's losses, primarily on gold, have cut the fund's year-to-date gains to 1.3%.
Advantage lost money not only on physical gold, which is down 17% this year, including 13% this month, but on gold-mining stocks, some of which have done even worse. Still, despite gold's troubles—including its worst two-day decline in 30 years—Paulson has said it is sticking the precious metal as an inflation hedge.
Firm founder John Paulson reiterated his belief in gold on a conference call with investors this week, in which he also discussed another favorite: convertible bonds.
Paulson told investors that its Credit Opportunities Fund currently has a quarter of its assets in convertible bonds. The firm pointed to its investment in Realogy Holdings convertibles. That debt has since been converted to equity, and the stock has jumped 14% this year.
Paulson also told clients this week that his firm's mortgage-backed securities portfolio—20% of the Credit Opportunities Fund—has also done well.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note