JP’s great run came to an end last month.
Paulson Partners, which bets on companies involved in takeovers, fell 1.3 percent, pulled down by positions in health care and telecommunications sectors, according to a person familiar with the matter. That pared yearly gains to 5.1 percent. Its Credit Opportunities fund declined 1.4 percent last month on losses in convertible bonds and post-reorganization equities, cutting gains in 2014 to 7.5 percent.
Of course, it was always only a selectively great run….
Last month’s losses mean Paulson’s event-driven Advantage funds and Recovery fund are down for the year. The Advantage Plus fund, a levered strategy that bets on companies going through spinoffs, restructurings or bankruptcies, plunged 5.3 percent in July and 3 percent this year, the person said.
The unlevered Advantage fund decreased 4.4 percent last month and 4.1 percent this year. The Paulson Recovery fund slumped 4.9 percent in July.