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 before today’s decline. Based on back of the envelope math, Paulson’s paper loss on H-P is more than $500 million. [Deal Journal]
John Paulson
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 percent year to date and the unlevered fund down 3 percent year to date. [CNBC]
ironically fake john paulson buys real trees
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 banks and individuals and selling it pseudonymously to a major French newspaper to publish in a twelve-part serial. If you live in the U.S. that may not sound like such a great idea, since we don’t consume a lot of based-loosely-on-real-events financial fiction unless it stars Shia LeBoeuf.
But in France, where after all mime is considered a form of entertainment, there seems to be a big appetite for fictionalized financial markets, as Le Monde found out when they puplished “Terminus pour l’euro” this summer. But Le Monde’s success may just have ruined it for the rest of you:
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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 year ago.
His portfolio has been heavy on disappointments.
His investors don’t appear bothered by the whole fake trees incident and not even all of his funds are down. You’re only hearing about the ones not doing as hot being people love to tear a big man down. Read more »
Bloomberg reports the Advantage Plus Fund, Paulson’s flagship, lost 11 percent in June thanks to Sino-Forrest. Read more »
The fund run by Paulson & Co. has purchased a loan to American-art specialist Berry-Hill Galleries for about $10 million, as well as the mortgage on the gallery’s property in an elegant townhouse near the Frick Collection, according to public records and people familiar with the matter…The involvement of the fund, Paulson Credit Opportunities Master Ltd., has in effect rescued the gallery from a precarious position. [WSJ]
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Hedge Funds
Paulson And Co Only Lost $107 Million On Well-Researched Sino-Forest Bet
By Bess Levin
Not really enough to get upset or even mildly perturbed over, though in a letter to investors today re: the Chinese company, Paulson did note that “as the largest investors in the Paulson Advantage strategy,” the disappointment in the lack of trees is shared by the Paulson partners. Read more »
Really? He really needs this shit right now, after the fake trees incident? Read more »
A 2009 investment in a company that acquired assets from failed lender IndyMac is up some 200 percent, the billionaire hedge fund manager told investors when he met with some of them in Paris earlier this month. The paper gain in the value of OneWest, the newly minted Pasadena, California-based bank, is responsible for much of the 24 percent gain in Paulson’s $3 billion Recovery Fund last year and it has helped to push it up a further 4.22 percent in the first five months of 2011. The sharp gain in OneWest stands in stark contrast to the high profile losses some of Paulson’s portfolios are suffering right now thanks to declines in some of his biggest holdings including Bank of America and Citigroup and, in particular, the Toronto-listed Chinese company Sino-Forest. [Reuters]
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