Paulson and Co

  • 08 Apr 2014 at 3:30 PM

Dear Paulson Investors

March didn’t turn out as well as everyone had hoped but, on the bright side, it could’ve been so much worse. Read more »

John Paulson sat at his desk, staring at the office supplies that were all but making a mockery of him. The gold pens. The gold paper clips. The gold-plated keyboard, identical to the ones that he’d decreed everyone in the office have, too. He’d ordered them last year, along with the gold staplers, gold tape dispensers, gold paper weights. As his analysts were begging him to dump his holdings, he was directing his secretaries to get rid of everything in the office that didn’t reflect his position–nay, his feelings– for the precious metal that wasn’t nailed down to the floor. And how had gold repaid him? How had it treated his fund? By losing something like 10,000% and spitting in his face. And yet he still would not budge. Not when gold lost him hundreds of millions. Not when his friends, people who really cared about him, took him aside and said, “I’m telling you this as a friend: she’s out there making a fool of you.”

But now, as he stared at the keyboard, all he could think was how much he hated gold. He had a right mind to kick her to the curb, and that’s exactly what he was going to do. Paulson shot up out of his chair and raised his arm to sweep the keyboard, the pens, and the paper-clips into his, yes, gold-plated waste paper basket, with one cleansing motion, when a trusted adviser came bounding through the door.

“P!” he shouted. “You’re not going to believe this.” Read more »

  • 06 Dec 2013 at 6:09 PM

Christmas Come Early For John Paulson

Billionaire hedge-fund manager John Paulson posted gains in his firm’s main strategies in November, in part from an investment in Extended Stay America Inc., according to two people familiar with the matter. Paulson’s event-driven Advantage fund surged 13 percent in November and 30 percent this year, said the people, who asked not to be identified because the information is private…Paulson Partners Enhanced Fund, the leveraged version of the firm’s merger-arbitrage strategy, gained 2.3 percent in November and 28 percent this year, the people said. Paulson Partners increased 1.2 percent last month and 16 percent year-to-date. The Recovery Fund, which seeks to benefit from growth in the economy, is the firm’s best-performing strategy in 2013. The fund rose 6.5 percent in November, bringing returns since the start of the year to 55 percent, according to the people. The Paulson Credit Opportunities Fund increased 3.2 percent last month, bringing returns for 2013 to 20 percent, the people said. Paulson’s Advantage Plus fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage, rose 6 percent in November and 28 percent this year, according to the people. [Bloomberg]

Hedge fund manager John Paulson, known for huge gains followed by heavy losses in some of his funds, extended his portfolios’ winning streak in September, leaving all of them with double-digit gains for the year, a person familiar with the numbers said on Monday…Paulson told investors that his Recovery Fund gained 4.2 percent in September and is up 37.8 percent for the year, while the Paulson Enhanced fund gained 3.1 percent and is up 25.6 percent for the year, the source said. Even his Advantage Funds, the firm’s biggest before suffering heavy losses in 2011 and 2012, were up: The Advantage Fund gained 0.9 percent to be up 11 percent for the year, while the Advantage Plus Fund gained 1.2 percent and is up 15.8 percent. [Reuters]

A couple of ASU grads come up with a golden idea worth celebrating. It’s called 24 Karat Wines, a sparkling wine laced with gold. We were there for the big launch. “Tonight people are going to see what me and my partner Keagan love,” says Nicholas Cower, CEO of 24 Karat Wines. What they love is this sparkling wine created by the pair. “We looked at why do people go out and drink champagne, why do people go out and they buy these bottles of champagne. It’s the celebration it’s the fun it’s the excitement.” “This is the first product of its kind. American-made, we’re home grown Arizona boys.” And these Arizona boys see gold in their wine, literally. 24 Karat is made with flecks of gold, shimmering in each glass. “It’s the first, the first California sparkling wine with real 24 karat gold in it.” 24 Karat Wine is available in Tempe only. It’s a start off point for what they hope will become a huge phenomenon. [Fox10, Related re: John Paulson's documented love of all things gold]

Why do people (investors, media, random passersby on the street, this lady) like to harp on all the money John Paulson has lost in the past couple years, despite the fact that they could be talking about his new hot-ish streak? Why can’t he get a little credit for all of his great investment ideas, instead of relentless bitching and negativity about the ones that haven’t yet panned out? It’s something the hedge fund manager has thought a lot about lately and while “I’m surrounded by fucking assholes” seems like it could account for some people’s behavior, he’s finally come up with what seems like a pretty good general explanation: it’s those damn gold funds. Sure, they’ll make money one day but first they’ve got to lose a lot and reading that “have lost forty seven percent for the year” distracts people from “up 3.4 percent!” So, there’ll be no more of that. Read more »

Billionaire John Paulson, the hedge- fund manager seeking to reverse two years of losses in some of his strategies, lost 27 percent in his Gold Fund last month after the precious metal and related securities plummeted, according to two people familiar with the matter. The loss brings the strategy’s decline to about 47 percent this year, said the people, who asked not to be identified because the information isn’t public. The fund is made up primarily of Paulson’s own money, one of the people said. The strategy has about $500 million, down from about $700 million at the end of March. [Bloomberg]