As John Paulson suffers through some of the worst losses of his career, vulture investors are circling.Rival hedgies and brokers are canvassing through Paulson & Co.’s likely investments in an effort to anticipate what the star manager might want to part with if he needs to return cash to investors, according to the WSJ.
Two of Paulson’s largest funds so far this year have suffered losses of more than 20% through August. As we noted earlier this month, the billionaire manager’s biggest fund, the Advantage Plus, had reportedly lost 34% in 2011 by the end of last month.
Most of Paulson’s investors are believed to be required to let him know by the end of October if they want their money back this year.
Some firms have already starting making “lowball” offers for investments they believe Paulson might need to unload, sources told the paper. Calls between brokers trying to get ahead of a potential Paulson windfall have created a buzz along Wall Street, the report added….
Find out more at http://blogs.barrons.com/focusonfunds/2011/09/28/wsj-vulture-investors-circling-john-paulson-as-october-deadline-looms/?mod=BOLBlog
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