Citigroup’s private bank is pulling about $500 million from Paulson & Co., the hedge fund run by billionaire John Paulson seeking to reverse record losses in 2011, according to two people familiar with the matter. The private bank is redeeming from Paulson’s Advantage Fund and Advantage Plus Fund, said the people who asked not to be identified because the information is private…Citigroup’s private bank in May advised clients not to add money to the Paulson funds, a person familiar with the matter said at the time. [Bloomberg]

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Comments (38)

  1. Posted by Guest | August 23, 2012 at 1:46 PM

    Probably better just to be a family office anyway… less reporting nonsense to deal with.

  2. Posted by Guest | August 23, 2012 at 1:50 PM

    Hey John, need a hand?

    – Bubble Boy

  3. Posted by Guest | August 23, 2012 at 2:00 PM

    Mr./Ms. client,
    After chasing Paulson's 2009 returns in 2011 our consultants have decided the strategy is just not working. Given volatility and market conditions in 2012 we have decided to go a different direction. Thank you for paying your management fees.
    -Citi private banker

  4. Posted by JC Comeback | August 23, 2012 at 2:08 PM

    Hey Vik,

    Can I get yo numba? Can I have it?


  5. Posted by Guest | August 23, 2012 at 2:14 PM

    Jesus Christ?

  6. Posted by Guest | August 23, 2012 at 2:15 PM

    Please confirm.
    – Nervous Jew

  7. Posted by oki | August 23, 2012 at 2:18 PM

    Bold move from Citi. I thought their go to maneuver when a hedge fund they invest in blows up was to bring the hedge fund manager over to the CEO position.

  8. Posted by guest | August 23, 2012 at 2:31 PM

    There are a few times a decade where you just can see a trade working out before anyone else can see it. It is a godlike feeling. This is where you make your fortune. The trick is to do very little in between these few opportunities. If a guy doubles your money on one big trade, thank him and ask for a redemption.

  9. Posted by Citi PB Client | August 23, 2012 at 2:40 PM

    So what you're telling me is I don't have to pay you a management fee anymore to advise me to invest in a fund that charges me 2 and 20 to invest in a Gold ETF that anyone with a Scottrade account could do already?

  10. Posted by Strong Sell | August 23, 2012 at 2:48 PM

    They should put their money into Tilson's fund. The fees are worth it – its the best way to put money into Berkshire Hathaway / JC Penney stock.

  11. Posted by Soros Sr | August 23, 2012 at 2:48 PM

    Frees up some space for Soros Jr to put that $3bn to work

  12. Posted by Guest | August 23, 2012 at 2:48 PM

    I was walking 9 holes late yesterday, hitting it well, and this guy walks up on 2, real asshole type that always follows up your story with a story where he does something similar but way better, introduces himself and can he play with me. So I started hitting it sideways, couldn't do anything right, three-putted 5 and he's had enough and sees a buddy on 16 and says he's gonna go catch a few holes with him. God damnit if I wasn't 1-under coming in.

    Maybe it turns around for JP.

  13. Posted by Ashley Dupre' | August 23, 2012 at 2:50 PM

    I agree with Citi pulling out is probably a good idea

  14. Posted by Pauls son | August 23, 2012 at 2:56 PM

    Gary, have you ever seen a man eat his own head?

  15. Posted by 2 cubes over | August 23, 2012 at 3:00 PM

    NNT? is that you?

  16. Posted by Guest | August 23, 2012 at 3:00 PM

    Not exactly. You're still on the hook for our fees.

  17. Posted by Unrelated, Not Funny | August 23, 2012 at 3:08 PM

    Hi, you've reached the voice mail of Matt Levine* I'm currently away from the office and spending some personal time with all of the Romney / Bain documents that Gawker just released, if you leave a message I'll return it as soon as I'm done organizing all the pertinent information into charts, graphs and, like, prose.

    *Just FYI, Gary Cohn's crotch once left a message in this voice mail box, so show some respect.

  18. Posted by PermaGuestII | August 23, 2012 at 3:20 PM


    Jesse Livermore

  19. Posted by Cat | August 23, 2012 at 3:30 PM

    Wait, for the first time in which life? Because I may be miscounting.

  20. Posted by goldie | August 23, 2012 at 3:33 PM

    The cash for gold people are doing it better than Paulson. Buying gold at a steep discount from desparate, broke people. Then melting it down into gold bars and selling it on ebay for a 40to 50% markup.

  21. Posted by Headline from 2037 | August 23, 2012 at 3:40 PM

    "We have not a single down month since August 2012," says Hedge Fund Big

  22. Posted by JohnnyCanes | August 23, 2012 at 3:48 PM

    In related news, Citi hired Matt Taibbi as their new investment strategist.

  23. Posted by JC Comeback | August 23, 2012 at 4:26 PM

    Jon Corzine…newbs

  24. Posted by evanscotb | August 23, 2012 at 4:57 PM

    His name was John Paulson

  25. Posted by 3 bears | August 23, 2012 at 5:01 PM
  26. Posted by Project Mahem grunt | August 23, 2012 at 5:17 PM

    His name…was John Paulson

  27. Posted by Nakil | August 23, 2012 at 8:03 PM

    It's the curse of the big short. All those guys have stunk it up since, but our friend Paulson has a few billion to cry himself to sleep with, unlike his investors who all got in AFTER 2008.

  28. Posted by 25thHourTrader | August 23, 2012 at 8:26 PM

    Fine. I'm taking C off my list of unsuccessful investors today.

    -J. Paulson

  29. Posted by Sweet deal | August 23, 2012 at 9:56 PM

    Paulson gets 2&20 and Citi gets 1% for selling "access" to a prized fund manager and at the end of this ass raping the client gets negative returns.

  30. Posted by PermaGuestII | August 24, 2012 at 8:38 AM

    0.20 * 0.00 = 0.00

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