John Paulson has a problem: He took a huge bath when AbbVie decided not to buy Shire because, even though it was ready to pay $54 billion for the company, the Irish pharma was basically just a tax shelter to Shire, and of the sort that is no longer kosher in the precincts of the U.S. Treasury Department. Now, John Paulson is Shire’s third-largest shareholder, and 30% drops in a company in which one is the third-largest shareholder are the kind of thing likely to produce something approaching panic in a hedge-fund manager.
John Paulson also owns a lot of Allergan shares. You may have heard of Allergan, either because it makes Botox, or because Bill Ackman talks about it a lot.
John Paulson has been listening closely to what Bill Ackman says about Allergan, which is that the company should take Valeant Pharmaceuticals $53 billion (or more?) offer and that if it doesn’t, he’s going to throw out its entire board and make Allergan take the deal. And John Paulson likes that plan. He likes it a lot. But he’d like it even more if all of those Shire shares he owns would one day be worth as much as they were when he bought them, all of those months ago, when tax inversions were the order of the day. And he has an idea on that front… Read more »
John Paulson’s strategies are pretty complex, if he may say so himself, as he does. So if he had his druthers, he’d stick with making money (and occasionally losing money) for investors as savvy and sophisticated as he is.
The only problem is, some of those savvy and sophisticated investors are getting a little uppity about little things like $2.3 billion paychecks and 2/20 for sub-S&P500 returns and the like. Well, hear this: If institutional investors don’t want to pay John Paulson, John Paulson will find someone else who does. Read more »
Make no mistake: John Paulson still loves Puerto Rico. And even if he can’t abandon the city of his birth for fun-in-the-sun money management on his beach 25 miles east of the island’s capital, he can certainly make money off the lucky (not so lucky?) ones who do, the posh pioneers who will either turn deeply indebted Puerto Rico into a major world financial center or introduce the death penalty for stealing bread. To which end he will continue to buy beaches, and build upon them residences of such luxury as to make the island’s current chic districts look like the hovels and shantytowns that they are. Read more »
… [John Paulson] is wading into a local housing controversy and arguing that a large-scale home proposed for a small-scale historic neighborhood on Hill Street in Southampton poses a “threat to our character” and the “peace and tranquility that makes our village what it is.” Mr. Paulson is one of some 85 area homeowners who penned letters to a local village review board. They object variously to the size, scale, scope and “visual incompatibility” of a speculative home planned on a vacant lot in an area where nearly a dozen nearby residences are more than a century old and roughly half or a third the size. The letter writers—socialites, financiers, artists, developers and the scions of a president and a governor—are opposing current plans for the 5,531-square-foot, single-family home on a 1.2-acre parcel being developed by Joe Farrell, a Hamptons builder whom critics have dubbed the “King of McMansions.” [WSJ via BI, related]