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 with JP (such as why only the Platinum Level P&C Members got a check to cover their 2012 losses), and probably also chalking it up to Paulson having an unfortunate brain freeze for the majority of last year. Hugh F. Culverhouse, not so much. The former investor, who filed suit against the hedge fund today, senses something more nefarious at play, the basis for his reasoning being that he doubts Paulson could be that stupid. Read more »
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: Read more »
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 stop posing for photoshoots with your eyes closed and your collar up. You probably even remain silent during earnings calls, no matter how big your position in the company, for fear of people snickering and asking each other “Why is he still here?” or whispering “Two words: fake trees.” It’s a dark, deeply depressing time, one that you wouldn’t wish on your worst enemies. Then you return 5 percent in a single month and BOOM! It is GAME ON. John Paulson, who seems to have regained his sea legs in time for a Q&A with Hartford Financial CEO Liam McGee this morning, knows what we’re talking about.
The short version (with regard to McGee’s apparent inability to give Paulson an answer as to what, exactly, he intends to do about the company’s stock slide): “What are you going to do about it? What are you going to do about it, asshole? You’re fucking shit. Where did you learn your trade, you stupid fucking cunt, you idiot? Who ever told you that you could work with men? Oh, I’m gonna have your job, shithead.” The slightly longer version:
Read more »
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. Read more »
Mitt Romney’s New York Schedule Includes Meeting With At Least One American Who’s Fallen On Hard Times This YearBy Bess Levin
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 the Waldorf-Astoria. But the bank’s rep tells us J.P. Morgan Chase chairman and former Obama ally Jamie Dimon will not be attending. Later in the evening, Steve Schwarzman, founder of Blackstone, the world’s largest private equity firm, is hosting a more intimate event at his Park Avenue home with CEO Tom Hill, Third Point founder Dan Loeb, former Chris Christie backer and hedge fund honcho Paul Singer and former SEC chairman Richard Breeden. [NYP]
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 month/quarter/year went ass-bleedingly bad by deflecting the blame with something like, “We lost it all but you can take solace in knowing it’s not us, it’s the market. The global financial markets are wrong, and we happy few at [insert firm here] are correct, in a way that has yet to reveal itself but rest assured, is coming” and/or offer a silver-lining à la,“Now hear the great news: we’ve turned every dollar you invested in the beginning of the year into 15 cents,” but whether you get a “sorry” or “sorry, we’re not sorry” letter doesn’t really much matter. In both cases, a whole bunch of your money is gone. Generally speaking. If you’re speaking of hedge fund Paulson and Co, however, such is not the case! According to the Times, the fact that the firm has suffered its worst performance since inception is actually of little matter to investors, as John Paulson has “guaranteed” he will be covering their losses, whatever they may be, come year-end. For the purposes of not getting anyone’s hopes up, it should be noted that the guarantee only applies to one investor. Everyone else, past performance yadda yadda still applies to you- better luck next year. Read more »
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 calling a year that has been “the worst in the firm’s 17 year history.” “For 17 years, we have been generally correct in these macro assessments. This year we were clearly wrong in our judgment regarding the potential for the negative conditions mentioned above to create a toxic mix of fear in the markets,” the report says. The hedge fund company is now “wholly focused” on returning investors to their high-water marks. The report says Paulson is confident that “many of our position will recover as fear subsides.” [NetNet]