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 »
Paulson and Co
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]
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]
Uncertainty Over Greece Weighs on Financial Markets (NYT)
Financial markets remained jittery Thursday amid concerns about the stability of the government in Athens, uncertainty over the fate of a second Greek bailout and suggestions by Ireland that it would require investors to pay for part of the bailout of its indebted financial institutions.
Paulson Funds Struggle as Big Bets Backfire; Gold Works (WSJ)
Mr. Paulson’s $9 billion Advantage Plus fund lost more than 13% in the early part of this month, through June 10, leaving it down 19.65% for the year, according to two investors briefed on the performance. The Enhanced Partners fund, which had been a big winner this year, lost nearly 7% in the first 10 days of June, and now is up less than 4% in 2011, according to the investors.
Referrals on SAC Disclosed (WSJ)
The SEC has received 65 referrals of suspicious trading at hedge-fund firm SAC Capital Advisors LP over the last decade, or 46 more than previously disclosed, according to Sen. Charles Grassley…Sen. Grassley, the top Republican on the Senate Judiciary Committee, said “many” of the referrals involved trades older than the five-year legal time limit on bringing civil actions for insider trading. The older trades “would not appear to trigger any concerns regarding ongoing investigations,” he said in a letter to SEC Chairman Mary Schapiro on Wednesday. SAC said it was “not surprised” that it has been the subject of 65 referrals since 2000. “Referrals by Finra are the result of surveillance of market-wide trading activity and they are neither findings nor allegations of insider trading,” a spokesman for SAC said in a statement. “Given the size of our firm, our active investment style, and the period covered, we are not surprised by the number of referrals. SAC has always cooperated fully with regulators and will continue to do so,” the spokesman said.
Falcone’s Venture Runs Into Static (WSJ)
The most recent evidence of complications surfaced this week in disclosures tied to a report expected to detail potential interference problems with the network…The report is expected to warn federal regulators that recent tests showed LightSquared’s network can knock out global positioning system, or GPS, receivers, according to people familiar with the report.
Och-Ziff May Profit From Market Turbulence (Bloomberg)
Daniel Och’s hedge-fund group bought options on almost $12 billion of U.S. stocks during the first quarter, a move that may generate profits if markets turn more volatile this year.
Wall Street Mind Meld: Obama Struggles? (Morning Money)
M.M. spoke with several senior Wall Street executives about recent efforts by the Obama campaign to reignite the financial industry support that generated a huge money edge over John McCain in 2008…One executive said he did not believe next week’s $38K per head event at Daniel had sold out, though another said that may have changed in the last few days.
Europe Faces ‘Lehman Moment’ As Greece Unravels (Bloomberg)
“The probability of a eurozone Lehman moment is increasing,” said Neil Mackinnon, an economist at VTB Capital in London and a former U.K. Treasury official. “The markets have moved from simply pricing in a high probability of a Greek debt default to looking at a scenario of it becoming disorderly and of contagion spreading to other economies like Portugal, like Ireland, and maybe Spain, Italy and Belgium.” Read more »
John Paulson’s annual midyear investor event, held on June 7-8 in Paris, featured notable speakers, workshops on the firm’s major strategies and a dinner cruise on the Seine. Unlike the firm’s recent soiree in Las Vegas, which was held solely for investors in his advantage funds, this event was open to anyone invested in the $37.5 billion firm. [AR]
Reuters reports John Paulson’s Advantage Fund was down 1.24 percent for the quarter (-3.10 in March); the Advantage Plus Fund was down 1.74 percent (4.4 percent in March); and the Gold fund was down ‘a smidgen,’ losing 0.87 percent (-0.43 in March). Paulson Partners was up 3.86 percent for the quarter; Paulson Enhanced was up 6.94 percent; and the Credit Opportunities Fund was up 6.44 percent.
If you’re an insecure Paulson and Co investor, you’ve probably spent at least several hours if not days or weeks at a time wondering how John felt about you. Would he like you as much if you weren’t a paying client? Does he prefer older investors? Does he play favorites with the gold fund? Well wonder no longer. His feelings have been made clear by this year’s investor conferences. All but one strategy have already had their events in Manhattan. Nice, but not the same as spending a whole weekend with him that potentially includes waking up with Mike Tyson’s tiger in your hotel suite after marrying a stripper named Jade. That opportunity goes to investors in Paulson Advantage, the flagship fund, which will have its meeting in Vegas next week. Read more »
Better than losing things like your life, family, house, possessions, etc, though it’s unclear if the LPs have made it to the the ‘perspective’ stage just yet. Read more »