Paulson To Hedge Funds: ‘Raise The Gates!’

Dec 31 2008 | 12:17pm ET

John Paulson has a few choice words for his hedge fund peers. The veteran hedge fund manager, who is enjoying an outstanding year amid an industry-wide downturn, says it’s a mistake for hedge funds to block investors from getting their money back.

“We think it’s a mistake for managers to use gates and other tools to limit investor access to their funds,” Paulson wrote in an investor letter, which was obtained by Bloomberg.

“While we recognize the difficulties of the current environment, we think it is a manager’s responsibility to raise liquidity to meet the redemption needs of their investors.”

According to the letter, Paulson was “especially surprised” by managers who restricted redemption requests accounting for a quarter or less of assets under management, and where “the managers have the cash and one of the stated reasons for restricting withdrawals is so the manager can continue to invest in new opportunities.” 

Paulson’s largest hedge fund, the $13 billion Paulson Advantage Plus, is up some 38% through Dec. 19, according to the letter.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of