Wednesday, 26 November 2014
Last updated 7 hours ago
Sep 10 2007 | 11:07am ET
Bad bets on the U.S. subprime mortgage market, as shown countless times in the past few months, can be deadly—or at least markedly unpleasant—for hedge funds. Good bets? They can be unspeakably lucrative.
And no one, it seems, bets as well as John Paulson and his Paulson & Co.: The $4.5 billion Paulson Credit Opportunities Fund, set up last year for the express purpose of betting against subprime, is reportedly up a remarkable 410% year-to-date, after an August surge of 26.67%. A second fund, the $2.3 billion Credit Opportunities II, soared 32% last month and is up 229.67% year-to-date.
The dramatic positive performance has more than doubled the firm’s assets under management to $20 billion.
Paulson’s event-driven fund, which primarily invests in distressed debt, is up 68.52% year-to-date after adding 5.21% in August. Paulson’s Midas touch extends even to his non-credit offerings: His flagship merger arbitrage is up 43% in 2007, though it was essentially flat (comparatively) last month, rising just 0.56%.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...