Investors in Paulson & Co.’s Advantage funds did not have a great year. It wasn’t quite 2011, but a 36% loss in no less unpleasant just because you suffered a 51% loss three years earlier.
On the other hand, losing 51% and surviving—nay, thriving—does mean that a 36% loss won’t necessarily kill your confidence. And old J.P., he’s as confident as ever, and has a message for those who lost 36% with him last year or who are having second thoughts about investing with him this year on account of said loss: Read more »
Not only is the noted patriot no longer making any money on the Great American Turnaround, he’s losing money! Lots of it last month, on all of the same things his other funds lost lots of money on. So it’s time for a change. In this case, a change to be more like all of his other funds. Read more »
AbbVie’s decision that Shire without the tax inversion break really isn’t worth the $54 billion hasn’t just gotten Paul Singer’s lawyers busy: It also put the probably final nail in what had been a very promising year for old John Paulson. The non-merger, coupled with a judge’s annoyingly legalistic insistence on not just letting hedge funds have everything they want with regard to Fannie Mae and Freddie Mac, cost Paulson’s Advantage Fund 14% last month, giving him quite the hill to climb if it’s not going to have a 2011/2-esque year and a desperate willingness to suggest anything. Read more »
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 »