Hedge Funds

Don’t Count Out John Paulson Just Yet

Yes, he’s on track to record another annus fucking horribilis, but he’s still got another 19 trading days to turn this thing around. Anything could happen.

One of the hedge funds run by John Paulson, whose prescient bets against housing where chronicled in the book “The Greatest Trade Ever,” is on track to be the second worst performer of 2012 among the universe of funds tracked by HSBC. Last year, it was the worst. Paulson’s Advantage Plus fund, which uses additional leverage than his other funds, is down 19 percent through the end of October, following a 53 percent loss last year. The fund bests just the Conquest Macro Fund, which is down 27 percent through the end of November.

The firm’s other flagship fund, the Paulson Advantage Fund, is down 13 percent this year, putting it among the top 10 losing funds in the HSBC universe this year as well. Paulson’s funds are underperforming because of a bet on a Euro collapse and subsequent positions in gold and makers of the hard asset. Fast forward: the Euro is little changed on the year and one of the firm’s biggest holdings, South Africa’s AngloGold Ashanti (AU), touched a 52-week low last week. “A potential collapse of the Euro triggered by a Greek default or other event could throw the world into recession and serious financial disorder,” wrote Paulson in the outlook section of his 2011 year-end letter.

One-Time Hedge Fund Wiz Faces Second Abysmal Year [CNBC]

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33 Responses to “Don’t Count Out John Paulson Just Yet”

  1. Motives says:

    Maybe it's because of that picture, but I read that first line as anus rather than annus. I guess either could work in this case.

  2. Guest says:

    JP is with @Andrew Lahde poolside

    Anyone else donate 100mill to a park…thought so.

  3. Guest says:

    Really psyched about being booked for another anus fucking horribilis!

    -S. Grey

  4. Matt's Mom says:

    John, you're going to need some awfully nice looking charts to show your investors explaining why they should keep their money in the fund, just FYI.

  5. HAM05 says:

    will he be performing at db open mike? in that outfit? *FINGERS CROSSED*

  6. JPeezy says:

    I promise you guys one thing: The next damn time I'm up +500% in a yr, I will have enough sense to quit.

  7. ILoveLamp says:

    As hard as it may be to believe it, it's looking more and more like Paolo Pellegrini was the brains behind this operation.

    • VonSloneker says:

      Ummm…

      – The Ghost of PSQR Capital

      • Wickius Apaedius says:

        We used "SPQR", an initialism from a Latin phrase, Senātus Populusque Rōmānus ("The Senate and People of Rome", see translation), referring to the government of the ancient Roman Republic, and used as an official emblem of the modern day comune (municipality) of Rome. It appears on coins, at the end of documents made public by inscription in stone or metal, in dedications of monuments and public works, and was emblazoned on the standards of the Roman legions.
        The phrase appears many hundreds of times in Roman political, legal and historical literature, including the speeches of Mārcus Tullius Cīcerō (Tully) and the Ab urbe condita libri ("Books from the Founding of the City") of Titus Livius (Livy). Since the meaning and the words never vary, except for the spelling and inflection of populus in literature,Latin dictionaries classify it as a formula.

  8. Silly question says:

    Whatever happened to hedging?

  9. Guest says:

    On the up side, HSBC said of all the funds it tracks, Paulson's were the least likely to be receiving a Wells Notice anytime soon.

  10. VonSloneker says:

    Hey JP, click the ad to your right and go to Looble.com…you're going to need some help picking the right lubricant for your year end meeting.

    – Dis-Advantage Limited Partners

  11. Gozer says:

    maybe he'll have more time to work on that moon face

  12. Guest says:

    Poor guy. He probably only has about $10 billion left now.

  13. guest says:

    Stay strong John. I've got gold going to $5 billion an ounce by the end of the year.

    – Peter Schiff

  14. guest says:

    Reversion, Mean, Mean, Reversion

    -AIG quant who was on the other side of Paulson's bend over stick

  15. Hobbes says:

    Paulson needs to stop reading Zero Hedge articles.

  16. GLD says:

    don't frown, double down.

  17. guest says:

    AngloGold Ashanti is pretty much worthless without AngloGold Ja Rule or AngloGold Fat Joe.

    -Early 2000s hip hop quant

  18. Guest says:

    For fucksfucius sake, just close the damn fund and start a new one! Who knows, invest the new funds in some illiquid securities, get a friendly marking at year-end and you can still make your 2/20 for 2012. You are giving the rest of us a bad name.

    – Brian Hunter