John Paulson

They are useful for blunting the impact of drops in his most favorite thing in the whole world. Read more »

Billionaire investor John Paulson told investors on Wednesday he is staying the course on gold even though there may be more short-term volatility in the price of the metal. The New York-based hedge fund manager has long stuck by his thesis that gold will someday be a powerful hedge against inflation, and it was no different on the investor call he held, two people who listened to the call said. John Reade, a partner at Paulson & Co, said that the firm, which oversees about $18 billion, is not veering off its course even as he cautioned that there could be more price fluctuations in the short term. [Reuters]

A couple weeks back, we went on the record to say that John Paulson was in the early stages of a grand comeback. The hedge fund manager, who had become a billionaire many times over thanks to his subprime bets, only to spend the last several years sucking a magnificent amount of wind, had finally turned things around in his Advantage and Advantage Plus funds, which gained 5.6 percent and 7.6 percent, respectively, in March. Like us, Paulson obviously saw the tides turning and while that had to have felt good, it left him with a bit of a conundrum.

While seeing Advantage plus lose over half its value from the end of 2010 through March of this year was probably not exactly JP (nor his investors’) idea of fun, the situation did present a unique silver lining, in that it meant that during the annii horribilis, those invested in the fund did not have to pay Uncle Sam a dime. Sensing a change in his investing karma, Paulson clearly panicked, waking up in the middle of the night to ask himself: ‘But wait? How am I going to replicate the euphoria of paying no taxes, without managing a hedge fund that loses a fuckton of money first?’ Read more »

John Paulson Does Not Have To Defend Himself To You, Hugh

Remember Paulson & Co’s investment in Sino-Forest? One of the less than stellar trades that helped contribute to 2011 being an annus fucking horribilis for the hedge fund? Got a former investor named Hugh F. Culverhouse all riled up, shouting about “gross negligence” and “failure to properly monitor” the situation and making claims that it was clear no one at P&C bothered to perform any due diligence on the company, because if they did, “the Paulson companies could…have foreseen Sino-Forest’s problems?” Things actually worked out for JP&Co on this one. Read more »

Earlier this month, Bloomberg reported that John Paulson was considering making Puerto Rico his home for a little more than half the year, having been intrigued by the idea of working from the beach and not paying capital gains taxes. For its part, PR was pretty excited about the prospect of the hedge fund manager calling the island home on tax forms, as his presence would create a much needed you scratch our back we’ll scratch yours situation for the local economy. And while a spokesperson for Paulson has categorically crushed the dreams of the Commonwealth, apparently everyone has gotten over it pretty quickly and would like to make it clear that anyone with money to spend is welcome, nay, encouraged to come on down. Millionaires would be good, billionaires are better, but beggars/choosers/etc. Read more »

Despite reports to the contrary. Nueva York it is. Read more »

The U.S. territory’s leaders are seeking to lure mainland residents such as hedge-fund billionaire John Paulson. Moving to Puerto Rico could allow Paulson and other top-earning taxpayers to shield future income from the Internal Revenue Service without giving up their passports…Even with potential tax advantages, Paulson and others considering a move to Puerto Rico should be wary, said Argeo Quinones Perez, a professor of economics at the University of Puerto Rico’s Rio Piedras campus. “For people as wealthy as Mr. Paulson and the like, spending half a year in this provincial, third-world environment would be like spending half a year in minimum-security prison,” he said in an e-mail. [Bloomberg, related]