Friday, 1 August 2014
Last updated 5 hours ago
Mar 7 2014 | 3:12am ET
Gold burned Paulson & Co. in 2013, but is fueling the $21 billion hedge fund in 2014.
Rising gold prices, combined with successful merger arbitrage and fixed-income bets, have kept the New York-based firm’s main hedge funds hot. Paulson’s Advantage Plus Fund, which returned about 30% last year, is already in double-digits for this year, rising 9.8% in February and 13% over 2014’s first two months, Bloomberg News reports. The less-levered Advantage Fund returned 6.6% last month and is up 8.4% this year.
Paulson’s levered merger-arbitrage fund, Partners Enhanced, extended its January gains with a 7.4% return in February, leaving it up 8.8% on the year. The unlevered version of the strategy rose 3.7% in February and 5.3% on the year.
The firm’s $5.7 billion Credit Opportunities Fund added 4.8% last month and is up 8.8% this year, while its Recovery Fund—last year’s best performer—is up 5.9% in 2014 after a 5.6% return in February.
Even Paulson’s PFR Gold Fund, which is dedicated the investing in the precious metal, is soaring. The $327 million fund, which lost 71% last year as gold prices plummeted, is up 40% this year after an 18% jump last month. The vehicle needs an 81% return to recoup its losses over the past three years.