Bonus/Layoffs/Liquidation Watch ’17: Paulson & Co.

A tough 2016 is manifesting itself in all sorts of unpleasant ways at 1251 Sixth Avenue.
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Getting his man elected president aside, John Paulson had a rough 2016. His flagship funds dropped by double-digits, and because he sold off a bunch of positions just before the Trump economic miracle (and held on to some he shouldn’t have), didn’t benefit from the Orange Rally that followed the Donald’s election. Not coincidentally, assets have also been flying out the door in the form of redemptions. Also not coincidentally, he plummeted to 170th in the world billionaire ranking on account of being almost $2 billion lighter than he was at the beginning of last year.

Not coincidentally, JP’s not feeling terribly generous this bonus season.

Several top executives at the hedge fund outfit are reeling after receiving what is known in the financial industry as “zeroes,” meaning little or no bonus for 2016, according to people with knowledge of the matter. These people also say that Paulson, who was an economic adviser to Donald Trump during the 2016 president campaign, may possibly be cutting staff and closing underperforming funds amid the performance woes….

“People are miserable there,” said one person with direct knowledge of the matter. “These are people with very high lifestyles who aren’t getting paid.”

John Paulson Slashes Bonuses at Hedge Fund After Dismal 2016 [Fox Business/Gasparino]


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John Paulson Can Lose Money Just Fine On His Own, Thank You Very Much

Guy Levy’s negative-return services are no longer required at Paulson & Co.

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John Paulson Finds Scapegoats For Gold Losses

It was those greedy bastard gold-miner CEOs this whole time! And they’re not gonna get away with it.

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Paulson & Co. To Stay A Mostly Family Office For At Least Two More Years

After that and President Trump’s triumphant reelection, JP’s leaving his clients and the rest of us and hightailing it to Puerto Rico.

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You Can Take The AIG Out Of Paulson & Co., But You Can't Take John Paulson Out Of AIG

Dumping stock in a company whose board you currently sit on is, among other things, an extremely Paulson move.

Bonus Watch '13: Paulson And Co.

The bad news: even if Paulson and Co. turns things around in 2012, they might not get to collect performance fees, on account of being under water due to last year's annus fucking horribilis. The good news: John Paulson's employee will still get paid, because that's just the kind of guy he is. Paulson’s flagship fund, Advantage Plus, fell a whopping 53 percent last year – prompting an apology to investors and a media drubbing. The decline also meant that it could be years before Advantage Plus and other fallen Paulson funds are able to return to their high-water mark, or the returns level at which John Paulson and his colleagues can begin to collect a significant percentage of their annual gains as performance fees. In an acknowledgement of that problem, Paulson recently told some employees he would reset the firm’s internal high-water mark to zero as of Jan. 1, said the person familiar with the matter, effectively meaning that if the company’s funds are in the black for 2012, those employees can collect bonuses pegged to this year’s returns and not be dragged down by last year’s losses. Paulson will pay for those bonuses himself, this person added. John Paulson Lowers the Bar to Pay Employees [CNBC] Related: John Paulson: I’ll Get The Losses This Year, Next Year We Go Dutch?