Remember the Paulson & Co Sino-Forest investment? Turned out to be one of the fund’s less than stellar ideas? Will get you an hour in the office hole for mentioning it? Most people affected by the trade have so far been willing to let it slide, perhaps preferring to focus their energies on bigger beefs with JP (such as why only the Platinum Level P&C Members got a check to cover their 2012 losses), and probably also chalking it up to Paulson having an unfortunate brain freeze for the majority of last year. Hugh F. Culverhouse, not so much. The former investor, who filed suit against the hedge fund today, senses something more nefarious at play, the basis for his reasoning being that he doubts Paulson could be that stupid. Continue reading »
Sino-Forest
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Hedge Funds
Former Paulson And Co Investor Isn’t Buying The “Oops, I Invested In A Horrible Stock” Act
By Bess Levin
His portfolio has been heavy on disappointments.
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. Continue reading »
Muddy Waters’ Carson Block Is Not Impressed With S&P, Would Prefer Not To Be Thought Of As A “Ninja Assassin”
By Bess Levin
Earlier this month, Muddy Waters founder Carson Block published a report describing Sino-Forest as “a Ponzi scheme…investing for the 23rd century.” The note did not have a positive effect on the company’s stock price and major shareholder John Paulson ended up pulling his entire investment. Appearing on Bloomberg TV earlier today for a little post-mortem, Block wanted to get a couple things straight.
1. The S&P downgrade of Sino-Forest bonds? Bull shit.
“I’d think that it’s a bit of a cop out on the part of S&P. We published this almost a month ago. The company has had a microphone and a platform to respond. When it has opened its mouth, the company, the stocks and bonds have gone lower. Rather than having anything confidence inspiring to say, they have continued to spook investors. S&P may want to hang this on us, but I have a feeling that is really a cover for, at least in part, their own assessment that there are significant risks that are company specific not related to market perception and Muddy Waters.”
2. The mistaken impression some people have that he’s a ninja assassin? Also bull shit.
“I am getting uncomfortable, actually, with this idea that we are ninja assassins that are going to take this stock price down a huge percentage within minutes or days. What I would like to do to protect investors is that I would like to point out the issues and start a dialogue and get people thinking about these red flags before we come out with a report that sends the stock down 70%, 80%.”
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Posted in:
Hedge Funds
Paulson And Co Only Lost $107 Million On Well-Researched Sino-Forest Bet
By Bess Levin
Not really enough to get upset or even mildly perturbed over, though in a letter to investors today re: the Chinese company, Paulson did note that “as the largest investors in the Paulson Advantage strategy,” the disappointment in the lack of trees is shared by the Paulson partners. Continue reading »
“Due to the uncertainty over Sino-Forest’s public disclosures and financial statements, we have sold our stock and await the results of the independent committee’s investigation,” Paulson and Co said today. Continue reading »
“We are going to provide you with some information on why Muddy Waters research [on Sino-Forest] is a pile of crap,” said Richard Kelertas, an analyst at Dundee Capital Markets, during a conference call he held with clients on Tuesday afternoon. “We believe there’s nothing true in that report.” [FP, earlier]
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