John Paulson

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 the country” and that OWS shouldn’t be underestimated; Larry Fink, who told reporters, “I believe we should not turn our backs on these protests…Maybe we will get some balance”; Jamie Dimon, who told those listening to the JPM conference on Thursday, “I do vaguely remember the First Amendment that it is legal to demonstrate and it is completely fine. You should listen and not just have a knee-jerk reaction”; and Vikram Pandit, who in addition to saying that “trust has been broken between financial institutions and the citizens of the US,” told protesters he’d love to chat over the phone. With the exception of John Paulson, however, who last week issued a statement telling protesters to 1) beat it and 2) thank their lucky stars that as the founder of a ‘most successful business‘, he chose to set up shop in New York, most financiers with less then charitable feelings have kept their feelings to themselves, fearing retribution from the anti-Wall Street group. Until now. Read more »

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 in one troubled portfolio, the Advantage Plus fund, which is down 47 percent this year. He also plans to reduce the firm’s exposure to the stock market more broadly, according to several people who listened to the roughly hourlong call. [Dealbook]

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 house, JP issued the following statement/suggestion:

“The top 1% of New Yorkers pay over 40% of all income taxes, providing huge benefits to everyone in our city and state. Paulson & Co. and its employees have paid hundreds of millions of dollars in New York City and New York State taxes in recent years and have created over 100 high paying jobs in New York City since its formation. New York currently has the highest income taxes of any state in the country and thousands of businesses have fled New York to states with no income taxes such as Florida, Texas and Nevada, or moved offshore.

Instead of vilifying our most successful businesses, we should be supporting them and encouraging them to remain in New York City and continue to grow.”

Apparently organizers of the march were not swayed and after choosing not to take the advice, made their planned stop at Paulson’s townhouse, where they left him a (slightly mixed) message of their own. Read more »

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 who made a fortune from smart wagers against subprime bonds. [WSJ]

  • 01 Sep 2011 at 10:13 AM

John Paulson Made Money Last Week


That feels good to say, doesn’t it? Read more »

Think again. Read more »

  • 19 Aug 2011 at 4:38 PM

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 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]