According to the NY Post an auto bailout of sorts is saving
the bacon of one of New York City’s wealthiest investors. John Paulson, the billionaire hedge-fund
mogul, has been dumping his stake in Delphi Automotive, where he had been the
largest shareholder, as he faces more red ink — not to mention irate investors
who have demanded their money back.
This year through June 13, the 56-year old’s Paulson &
Co. sold close to 19 million Delphi shares, raising more than $500
million. That’s about the same amount
that investors pulled from the trading kingpin whose returns are cratering
again this year, after a terrible 2011.
Paulson emerged as the biggest shareholder in Delphi, the
former auto parts subsidiary of General Motors, with a 22 percent stake, when
the company exited bankruptcy and went public Nov. 16.
At the end of the first quarter, it was Paulson’s second
largest stock holding, according to public filings.
Last year’s Delphi initial public offering went ahead in a
rough market because Paulson needed to shore up his funds and meet redemptions.
Last year one of his funds, Advantage Plus, fell 52.5 percent. Advantage, the
unleveraged version, lost 36.1 percent….
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