The bad news: even if Paulson and Co. turns things around in 2012, they might not get to collect performance fees, on account of potentially still being under water due* to last year’s annus fucking horribilis. The good news: John Paulson’s employees will still get paid, because that’s just the kind of guy he is. Read more »
Paulson and Co
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:
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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 »
John Paulson, the hedge-fund manager having the worst year of his career, rebounded 2.4 percent in his main fund in October and climbed in all his strategies…Paulson’s main fund, the Advantage Plus Fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, reduced its year-to-date loss to 44 percent. The gold share class advanced 3.3 percent last month and declined 27 percent this year. Paulson, 55, posted positive returns in all of his funds in October as stocks rallied. [Bloomberg]
On Thursday, as Paulson spoke on a panel at an industry conference, he was asked what keeps him up at night, to which he responded: “I haven’t been getting a whole lot of sleep lately,” according to a person who was there…Paulson [also] told the audience that he doesn’t like losing money. [WSJ]
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]
John Paulson, the billionaire hedge- fund manager having the worst year of his career, has received less than 10 percent in redemption requests for his Recovery and Credit Opportunities funds for year’s end, according to two people familiar with the firm. Withdrawal orders for those two funds, which together managed about $15 billion as of July 31, were due at the end of September and may give some indication of what total redemptions could be across all of Paulson’s funds, the worst-performing of which has tumbled 47 percent this year…“We’re going to give Paulson the benefit of the doubt,” said Trip Kuehne, founder of Double Eagle Capital Management LP, a Dallas-based firm that has invested with Paulson since 2005. “I believe in him and his firm and don’t plan to pull my money.” [Bloomberg]
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Hedge Funds
Paulson And Co. Investors May Be Getting Coal In Their Stockings This Year
By Bess Levin
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]
That feels good to say, doesn’t it? Read more »
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]
His portfolio has been heavy on disappointments.
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Sponsored Content
SoFi Answers the Call to Refinance Student Loans and Provides Unique Community Benefits
This is a guest post written by SoFi’s CEO, Mike Cagney.
CLICK HERE TO READ THE FULL ARTICLE
Recently, there’s been a lot of talk amongst leaders in Washington about how to improve the painful process of repaying student loans. At SoFi, we feel your pain and work hard to offer more flexible, more affordable options for our borrowers. One idea that’s getting a lot of attention is increasing the options for refinancing debt after graduation. The only lender currently focused on refinancing private and federal student loans is SoFi.
We recognized early on that borrowers who have made timely payments on their loans, graduated from school, and have a job should be able to refinance their student loans at a lower interest rate. This may be why, after resuming lending by invitation, the media became increasingly interested in what we are doing.
In a recent article posted on MainStreet.com SoFi General Counsel Rob Lavet had this to say about SoFi’s ReFi products: Read more »
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