Billionaire hedge-fund manager John Paulson posted gains in his firm’s main strategies in November, in part from an investment in Extended Stay America Inc., according to two people familiar with the matter. Paulson’s event-driven Advantage fund surged 13 percent in November and 30 percent this year, said the people, who asked not to be identified because the information is private…Paulson Partners Enhanced Fund, the leveraged version of the firm’s merger-arbitrage strategy, gained 2.3 percent in November and 28 percent this year, the people said. Paulson Partners increased 1.2 percent last month and 16 percent year-to-date. The Recovery Fund, which seeks to benefit from growth in the economy, is the firm’s best-performing strategy in 2013. The fund rose 6.5 percent in November, bringing returns since the start of the year to 55 percent, according to the people. The Paulson Credit Opportunities Fund increased 3.2 percent last month, bringing returns for 2013 to 20 percent, the people said. Paulson’s Advantage Plus fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage, rose 6 percent in November and 28 percent this year, according to the people. [Bloomberg]
boom goes the dynamite
Starting today! Every day before it (not including 2007-2009) shall never be spoken of again! Don’t even entertain the thought of uttering ’2010-2012,’ in his presence or otherwise! Don’t say it, don’t even think it! Someone run out and get some holy water because we are witnessing a rebirth! Today is the first day of the rest of his life! Read more »
By a master craftsman. Read more »
Hear that? That’s the sound of Ping Capital exploding all over your face. Read more »
Confidential To Anyone Starting A Hedge Fund: Harry Markopolos Protégé Neil Chelo Will Make You Wish You Were Never BornBy Bess Levin
If anyone out there is considering starting a hedge fund, there’s a few things you should know. Don’t want to scare anyone but…okay we’re just going to come out and say it- according to reports, “gone are the days when a trader could leave some Wall Street firm with a few of his buddies, snap his fingers and raise several hundred million dollars overnight.” Now, you might have to spend six months to a year raising money and not only that? You’re going to have to make it through several rounds of due diligence by potential investors. You may also have to come face to face with a guy named Neil Chelo who some people (Neil) like to call The Enforcer. Read more »
Former UBS banker Bradley Birkenfeld is the guy widely credited with helping the authorities crack down on the less than legal activities at the Swiss bank vis-a-vis clients and their taxes. For his help exposing the tax evasion specialists, he’s been rewarded with time in the big house, which is not how he’d predicted this whole thing would turn out. To the contrary, Brad and his big brain had assumed that not only would he do no time for his own wrong-doing (he had, after all, been one of those people helping clients keep some of their wealth on the hush-hush), but that he’d be looking at nice big check for a job well done signed by the Department of Justice. BUT WHY? Why did he go to the trouble of screwing the man, which involved a decent amount of effort when laying on the beach with a Thai hooker involves none? It probably had to do with the fact that he realized the man was going to screw him if he didn’t make some moves first.
On Oct. 5, 2005, high-flying American banker Bradley Birkenfeld abruptly resigned his plum position in the Geneva office of Switzerland’s premier financial institution, UBS. The sole reason, he said, was his discovery of an internal document that, in his mind, revealed a calculated plan on the bank’s part to disown him, or any one of his fellow cross-border bankers, should the music suddenly stop in UBS’ dubious $20 billion dance with America’s most wealthy. The offending document was an internal brief from UBS Legal that cataloged cross-border banking activities illegal in the United States, where Birkenfeld and the other private bankers in UBS’ wealth management division routinely made regular prospecting trips for wealthy U.S.-resident clients. The rub was that – point by point – the list of prohibitions contradicted the fundamentals of Birkenfeld’s job description: No establishing of business relationships “for securities purposes” the document read; no “solicitation of account opening” or “cold calling or prospecting;” and no contacting U.S. clients by “telephone, mail, email, advertising, the internet or personal visits.” “I’m like, ‘Holy shit, this is a stick of dynamite!’” Birkenfeld said.