Thursday, June 23, 2011

Why the $5 Billion Man just can’t catch a break

John Paulson, the prominent hedge-fund manager who scored a $5 billion payday last year, has suffered further losses in two key funds of his $38 billion Paulson & Co, The Wall Street Journal reports.

The $9 billion Advantage Plus fund has lost about 15% so far this month, through June 17, leaving it down 20.9% for the year, according to an investor briefed on the performance. Meanwhile, Paulson’s Enhanced Partners fund, which had been on a winning streak until recently, has lost more than 8% so far this month, through June 17, leaving it up about 2% this year. Both funds lost about 1.5 percentage points in the week ending June 17.

The losses are a reversal of fortune for Paulson, who scored $20 billion in trading profits in 2007 and 2008 betting against subprime mortgages and financial shares. Even with solid but not spectacular returns of 17% in his Advantage fund last year, Paulson made $5 billion for himself for 2010 thanks to hedge-fund fees and winning bets on investments such as gold….

There’s more good stuff where this came from at:
http://blogs.wsj.com/deals/2011/06/23/john-paulson-also-is-taking-a-bath-on-gold-mining-stocks/

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