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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Comments (33)

  1. Posted by Motives | December 3, 2012 at 3:12 PM

    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. Posted by Guest | December 3, 2012 at 3:15 PM

    JP is with @Andrew Lahde poolside

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

  3. Posted by InfiniteGuest | December 3, 2012 at 3:16 PM

    Go on …

  4. Posted by Guest | December 3, 2012 at 3:17 PM

    Really psyched about being booked for another anus fucking horribilis!

    -S. Grey

  5. Posted by Matt's Mom | December 3, 2012 at 3:19 PM

    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.

  6. Posted by HAM05 | December 3, 2012 at 3:21 PM

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

  7. Posted by JPeezy | December 3, 2012 at 3:25 PM

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

  8. Posted by ILoveLamp | December 3, 2012 at 3:26 PM

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

  9. Posted by Silly question | December 3, 2012 at 3:29 PM

    Whatever happened to hedging?

  10. Posted by Guest | December 3, 2012 at 3:29 PM

    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.

  11. Posted by Guest | December 3, 2012 at 3:42 PM

    I did.

    -Andrew Lahde

  12. Posted by VonSloneker | December 3, 2012 at 3:49 PM

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

    – Dis-Advantage Limited Partners

  13. Posted by Gozer | December 3, 2012 at 3:49 PM

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

  14. Posted by VonSloneker | December 3, 2012 at 3:51 PM


    – The Ghost of PSQR Capital

  15. Posted by Guest | December 3, 2012 at 3:54 PM

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

  16. Posted by guest | December 3, 2012 at 4:06 PM

    performing in that jacket… a cover of EMF's "Unbelievable"???

  17. Posted by Guest | December 3, 2012 at 4:09 PM

    I didn't.

    -Andrew Lohse

  18. Posted by guest | December 3, 2012 at 4:29 PM

    So did I.

    "anus fucking" is a much more commonly seen word combination than "annus fucking"

  19. Posted by guest | December 3, 2012 at 4:35 PM

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

    – Peter Schiff

  20. Posted by guest | December 3, 2012 at 4:47 PM

    Reversion, Mean, Mean, Reversion

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

  21. Posted by Hobbes | December 3, 2012 at 4:50 PM

    Paulson needs to stop reading Zero Hedge articles.

  22. Posted by Warren in Omaha | December 3, 2012 at 4:50 PM

    $100 million…….oh my, what a big donation….hahahahahahahaha….

  23. Posted by Oil Trading Fool | December 3, 2012 at 4:53 PM

    The Rangers baseball team donated many millions to Chan Ho Park some years back.

  24. Posted by GLD | December 3, 2012 at 4:54 PM

    don't frown, double down.

  25. Posted by Wickius Apaedius | December 3, 2012 at 4:59 PM

    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.

  26. Posted by We're Not Interested | December 3, 2012 at 5:02 PM

    Don't ask us.

    -FedEx Aviation

  27. Posted by The Oracle | December 3, 2012 at 5:04 PM

    Never run out of cash!

  28. Posted by Fist of Good | December 3, 2012 at 5:10 PM

    Where are the clients $100 million donations??

  29. Posted by Pall Two-door | December 3, 2012 at 5:17 PM

    Losers add to losers!!!

  30. Posted by guest | December 3, 2012 at 5:22 PM

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

    -Early 2000s hip hop quant

  31. Posted by VonSloneker | December 3, 2012 at 5:37 PM

    The only people we hate more than the Romans are the fucking Judean People's Front…

    – PF of J

  32. Posted by Guesticle | December 3, 2012 at 5:52 PM

    Tell me about it.

    -Paulson Advantage Plus LP

  33. Posted by Guest | December 3, 2012 at 7:30 PM

    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

  34. Posted by sme | December 4, 2012 at 7:25 AM