Paulson and Co

  • 08 Feb 2012 at 12:16 PM

You Better Hope You Hear John Paulson Loud And Clear

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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  • 22 Dec 2011 at 4:12 PM

John Paulson’s Got Good News And Bad News

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 Is Sorry

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]

Those Losses Are Harder On John Paulson Than They Are On You

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]

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]

Paulson And Co Investors Standing By Their Man


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]

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]