John Paulson

  • Hedge Funds

    Dear Paulson Investors

    Paulson, the billionaire hedge-fund manager seeking to reverse record losses in 2011, posted a 13 percent decline last month in his gold fund as bullion and mining stocks fell, a person briefed on the returns said today. The loss leaves the $1.2 billion fund, which can buy derivatives and other gold- related investments, down 23 […]

    / Jun 6, 2012 at 3:22 PM
  • Hedge Funds

    Paulson And Co To Provide Monthly ‘My Bad’

    Which is pretty nice of him.

    John Paulson, the billionaire hedge- fund manager seeking to reverse record losses in 2011, lost 6.7 percent last month in one of his largest funds as gold-mining stocks dropped, said two people briefed on the returns. The decline leaves Advantage Plus, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, down 8.8 percent this year, said the people…Paulson & Co. will now send a “brief commentary” along with its monthly performance estimates to investors, Paulson said in the letter. He is seeking to reverse 2011 losses from an ill-timed bet on an economic recovery, which caused him to scale back risk before stock markets started to rally late in the year. About 20 percent of Paulson’s investor base is currently underwater on the fund holdings, one of the people said.

    Paulson Hedge Fund Said to Extend Slump With April Loss [Bloomberg]

    / May 8, 2012 at 4:52 PM
  • david-tepper_281025s-260x177

    News

    When Lucky Brass Balls Fail

    “Of the top 25 earners of 2010, 15 did not make this year’s list [of highest paid hedge fund managers]. Among them: Appaloosa’s David Tepper, whose Palomino fund fell 3.33 percent, and Edward Lampert of ESL Partners, which plunged 12 percent on big losses from Sears Holdings. Mr. Tepper did not respond to requests for […]

    / Mar 30, 2012 at 2:37 PM
  • anshujainstory

    Banks, News

    Deustche Bank: You Say We’re Too Big To Fail Like It’s A Bad Thing

    Bloomberg has this sort of surreal article today about Deutsche Bank basically quoting a bunch of people saying “we are way way too big to fail and it is awesome.” Like: Banking consolidation “sadly” will be “one of the many potential unintended consequences of regulation,” [co-CEO-in-waiting-whatevs Anshu] Jain said in a Bloomberg Television interview on […]

    / Mar 27, 2012 at 5:50 PM
  • johnpaulsonposing

    Hedge Funds

    Bonus Watch ’13: Paulson And Co.

    The bad news: even if Paulson and Co. turns things around in 2012, they might not get to collect performance fees, on account of being under water due to last year’s annus fucking horribilis. The good news: John Paulson’s employee will still get paid, because that’s just the kind of guy he is.

    Paulson’s flagship fund, Advantage Plus, fell a whopping 53 percent last year – prompting an apology to investors and a media drubbing. The decline also meant that it could be years before Advantage Plus and other fallen Paulson funds are able to return to their high-water mark, or the returns level at which John Paulson and his colleagues can begin to collect a significant percentage of their annual gains as performance fees.

    In an acknowledgement of that problem, Paulson recently told some employees he would reset the firm’s internal high-water mark to zero as of Jan. 1, said the person familiar with the matter, effectively meaning that if the company’s funds are in the black for 2012, those employees can collect bonuses pegged to this year’s returns and not be dragged down by last year’s losses. Paulson will pay for those bonuses himself, this person added.

    John Paulson Lowers the Bar to Pay Employees [CNBC]
    Related: John Paulson: I’ll Get The Losses This Year, Next Year We Go Dutch?

    / Mar 27, 2012 at 4:24 PM
  • john paulson

    Hedge Funds

    Former Paulson And Co Investor Isn’t Buying The “Oops, I Invested In A Horrible Stock” Act

    Remember the Paulson & Co Sino-Forest investment? Turned out to be one of the fund’s less than stellar ideas? Will get you an hour in the office hole for mentioning it? Most people  affected by the trade have so far been willing to let it slide, perhaps preferring to focus their energies on bigger beefs […]

    / Feb 21, 2012 at 12:56 PM
  • john paulson 15feb12

    Hedge Funds

    John Paulson Ditches Banks, Drums Up Some Business For Them

    I think everyone who’s ever worked at an investment bank saw at least a little something of themselves in the Journal’s fat asshole article this morning. My own feelings are mixed since, for me, investment banking was a lifestyle improvement over a previous job that left me partially paralyzed from overwork (true story! I got better). So in a sense I don’t have that much to complain about, but I did, and do, constantly and loudly and now on the internet.

    Part of what sucks about banking – that I think the Journal article missed – is the frequent pointlessness of your activity: you get on a plane, go see a guy, tell him about this awesome merger or financing or whatever you’ve got planned for him, shake hands, and fly away never to see him again. And by “never” I mean “not until six months later, after he’s printed a deal away from you, when you go and do the same thing, but this time maybe you don’t shave.” You’d probably still be a fat, stressed, overworked cabbie-puncher if most of your ideas actually got executed, but you’d perhaps be less suffused with metaphysical dread. That’s how I’d feel anyway. Then, I blog now.

    Anyway, a thing that I don’t know anything about, and never ever want to know anything about, so don’t tell me, is the proper price-to-book trading multiples of life vs. P&C insurance companies and whether there’s a conglomerate discount for being in both businesses. So with that as a disclaimer I found this pretty damn convincing:

    / Feb 15, 2012 at 4:02 PM
  • News

    You Better Hope You Hear John Paulson Loud And Clear

    When you’re hedge fund manager who not too long go scored returns of 590 percent and a personal payday of $3.5 billion in a single year, losing 50 percent while being forced to live off management fees can take a toll on the ego. You start questioning every move. You become plagued by self-doubt. You […]

    / Feb 8, 2012 at 12:16 PM
  • News

    Area Man Would So Not Want To Be John Paulson Right Now

    John Paulson, the billionaire money manager who’s vowed to restore his hedge fund to profitability after the worst year of his career, may have to take a cue from rival Ken Griffin. Paulson’s $28 billion firm, Paulson & Co., will need to generate a 104 percent return to recoup a 51 percent drop in one […]

    / Jan 10, 2012 at 5:08 PM
  • News

    John Paulson’s Got Good News And Bad News

    The bad news, if you’re a Paulson & Co investor that doesn’t have a special situation worked out with JP on the side, is that the firm’s funds are down by a lot. A whole lot. The good news is that you’ve all now been offered a unique opportunity.

    / Dec 22, 2011 at 4:12 PM
  • Election 2012

    Mitt Romney’s New York Schedule Includes Meeting With At Least One American Who’s Fallen On Hard Times This Year

    Romney will start his tour with a breakfast at Cipriani 42nd Street at $2,500 per head. Among the 80 co-hosts on the bill are Romney’s richest donor, hedge fund billionaire John Paulson, former Goldman Sachs chairman John Whitehead, Forstmann Little chairman Julian Robertson…Then, J.P. Morgan Chase vice chairman Jimmy Lee is hosting a luncheon at […]

    / Dec 13, 2011 at 12:29 PM
  • News

    John Paulson: I’ll Get The Losses This Year, Next Year We Go Dutch?

    When one is an investor in a hedge fund, letters from the top that include lines about being “disappointed,” “clearly wrong in our judgment,” and this year being notable for being “the worst in the firm’s history” are tough to take. Sure, they’re slightly more palatable than those that attempt to explain why the last […]

    / Nov 30, 2011 at 2:29 PM
  • Communiqués

    John Paulson Is Sorry

    Hedge fund legend John Paulson apologized to investors for what he is calling a year that has been “the worst in the firm’s 17 year history.” “We are disappointed and apologize,” the Paulson Funds said in a letter to investors obtained by CNBC. Hedge fund legend John Paulson apologized to investors for what he is […]

    / Nov 29, 2011 at 3:33 PM
  • News

    Don’t Call It A Comeback

    John Paulson, the hedge-fund manager having the worst year of his career, rebounded 2.4 percent in his main fund in October and climbed in all his strategies…Paulson’s main fund, the Advantage Plus Fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, reduced its year-to-date loss […]

    / Nov 4, 2011 at 10:47 AM
  • Hedge Funds

    Those Losses Are Harder On John Paulson Than They Are On You

    On Thursday, as Paulson spoke on a panel at an industry conference, he was asked what keeps him up at night, to which he responded: “I haven’t been getting a whole lot of sleep lately,” according to a person who was there…Paulson [also] told the audience that he doesn’t like losing money. [WSJ]

    / Oct 20, 2011 at 4:30 PM
  • News

    Area Hedge Fund Manager Pretty Sure Wall Street Protesters Are Just Looking To Rub Up Against Each Other And Score Dope

    What do top financial services employees think of the month-long protests headquartered in Zucotti Park, which took over Times Square over the weekend? So far the most vocal people have expressed support for the movement, like Jim Chanos, who said, “New York is so finance-centric that people here underappreciate the reaction of the rest of […]

    / Oct 17, 2011 at 3:11 PM
  • Hedge Funds

    John Paulson: Mistakes Were Made

    Mr. Paulson, the money manager who made billions during the financial downturn betting against the subprime mortgage market, admitted in his quarterly conference call that he had made a bad bet on a recovery in the domestic economy, the linchpin of the firm’s investment thesis this year. Now, Mr. Paulson is moving to cut leverage […]

    / Oct 12, 2011 at 5:45 PM
  • News

    Keep Antagonizing John Paulson And Maybe He Takes His Ball And Goes Offshore

    As you may have heard, after occupying downtown Manhattan for the last 25 days, those protesting Wall Street (etc) announced that they’d be making a trip up North, with stops at the Upper East Side homes of, among others, Jamie Dimon and John Paulson. Before they made an appearance at the Paulson and Co founder’s […]

    / Oct 11, 2011 at 4:32 PM
  • Hedge Funds

    Paulson And Co Investors Standing By Their Man

    John Paulson, the billionaire hedge- fund manager having the worst year of his career, has received less than 10 percent in redemption requests for his Recovery and Credit Opportunities funds for year’s end, according to two people familiar with the firm. Withdrawal orders for those two funds, which together managed about $15 billion as of […]

    / Oct 11, 2011 at 12:34 PM
  • Hedge Funds

    Paulson And Co. Investors May Be Getting Coal In Their Stockings This Year

    One of the stocks in Paulson’s portfolio, Alpha Natural Resources, is getting clobbered today after the company and rival Walter Energy warned that output for steelmaking-coal will fall short of expectations…Paulson’s bet on Alpha Natural Resources is a relatively small chunk of his portfolio, but it is another ill-timed wager this year from the man […]

    / Sep 21, 2011 at 3:46 PM
  • News

    John Paulson Made Money Last Week

    That feels good to say, doesn’t it?

    / Sep 1, 2011 at 10:13 AM
  • News

    Think John Paulson And Mitt Romney Are Scared Of A Little Mist?

    Think again.

    / Aug 25, 2011 at 2:25 PM
  • News

    John Paulson Can’t Catch A Break

    Paulson made a surprise disclosure in May that he started buying Hewlett-Packard shares during the early part of 2011. His Paulson & Co. hedge fund is hardly known for plowing money into tech stocks, so the buying binge was eye-opening. … Unfortunately for Paulson and other investors, H-P shares have been clobbered in 2011, even […]

    / Aug 19, 2011 at 4:38 PM
  • News

    Just Paulson Has Seen Better Summers

    The market volatility of last week was not kind to the hedge fund behemoth John Paulson, whose flagship fund was down 34 percent through Friday’s close, according to an investor who was briefed on the performance today…Paulson’s merger funds are faring considerably better, though still in the red with the enhanced levered fund down 7 […]

    / Aug 17, 2011 at 6:47 PM
  • News

    European Regulators Contemplate Temporary Ban On Financial Fiction

    With half of Europe having banned short-selling and anything that might loosely resemble it, if you think that French banks are undercapitalized then you may be seeking less traditional ways to monetize that view. One approach that you might have considered is writing a fictional account of a near-future Eurozone meltdown with real names of […]

    / Aug 15, 2011 at 2:01 PM
  • News

    It’s Better To Be John Paulson Than To Work For Him

    Great news Paul Krugman! A lack of trees and fake-doc mortgages add up to a down (31%) YTD performance for John Paulson’s levered Advantage Plus and (21.5%) YTD for the regular Advantage. But gold bugs will also have something to cheer: There appears to be a sliver or two of good news for Paulson. His gold […]

    / Aug 10, 2011 at 3:34 PM
  • News

    Paul Krugman Hopes John Paulson Is To Blame For Today’s Crash

    Based on a second-hand rumor that a big hedge fund’s position is getting liquidated because of margin calls. With gold at a new record we’ll guess not. Krugman himself allows that he’d like/hope for this to be the case on account of that BusinessWeek article that implied Paulson might be smarter than him from over a […]

    / Aug 8, 2011 at 6:49 PM
  • Hedge Funds, News

    John Paulson Explains What’s Been Going Wrong

    His portfolio has been heavy on disappointments.

    / Jul 21, 2011 at 3:22 PM

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