Like the rest of us here in snow-weary New York, John Paulson no doubt looked out his window yesterday and dreamed of sunnier climes. Puerto Rico comes to mind. But unlike (most of) the rest of us, he’s got more than a little spring in his step. Because his can’t-miss plan to make sure his double-digit returns this year needn’t be printed in red is working like a goddamned charm so far.
His merger funds, which account for about half of the firm’s assets, advanced for the second straight month, rising 3 percent in one version and 6.5 percent in a fund that uses leverage to boost gains, according to a person familiar with the matter. The increases pushed returns to 4.2 percent and 9.3 percent, respectively, for the year….
The firm’s credit fund climbed 2.1 percent in February because of positions in energy, post-reorganization stocks, and holdings of defaulted securities, the person said, bringing gains for the year to 3 percent. The Advantage fund, which makes bets around corporate events, gained 1.5 percent.
The Paulson Special Situations Fund, formerly called the Paulson Recovery Fund, rebounded from January losses caused by its exposure to Greece. The fund rose 7.3 percent last month, according to the person, cutting its loss this year to 2.6 percent.