Opening Bell: 6.5.17

John Paulson Goes From Hot to Not as Most Client Money Vanishes (BBG)
Since the end of 2015 alone, assets at Paulson & Co. have fallen by $6 billion from losses and client withdrawals. The decline, underscored in the firm’s most recent regulatory filing, leaves Paulson and his employees with just $2 billion in client money. Most of the remaining $8 billion is Paulson’s own fortune.

Fretting over savings, Mrs Watanabe turns to bitcoin (Reuters)
"After I first heard about the bitcoin scheme, I was so excited I couldn't sleep. It's like buying a dream," said Mutsuko Higo, a 55-year-old Japanese social insurance and labor consultant who bought around 200,000 yen ($1800) worth of bitcoin in March to supplement her retirement savings. "Everyone says we can't rely on Japanese pensions anymore," she said. "This worries me, so I started bitcoins."

Lawyers warn Saudi Aramco of New York IPO litigation risks (FT)
“The company is very conservative,” said one person briefed on the matter. Saudi Aramco’s assets in the US, including the country’s biggest refinery Motiva, were more vulnerable to legal action, he said. “It would be reckless to list in New York when advised so strongly against it,” he said.

Goldman, Nomura heeded warnings before Venezuela bond deal (Reuters)
In early May, Goldman Sachs turned down a request from Caracas to convert $5 billion in sovereign bonds into marketable securities partly because it would mean dealing directly with a Venezuelan state bank, according to people familiar with the talks. The complexity of the operation was the primary concern for Goldman, but the Wall Street bank also weighed reputational risks after opposition politicians called it to warn about the potential damage of being seen as aiding President Nicolas Maduro's administration.

Quant on Quant: Picking Winners in the Era of Machine Investing (BBG)
The burgeoning field of computer-driven investing has grown so large and complex that a Singapore family office has decided you need a quant to find the right quants.

Passive funds are on pace to eat the entire US stock market by 2030 (Qz)
Passive funds will swallow up the US stock market before too long, according to Pictet Asset Management. Index trackers currently hold more than 40% of US stocks, according to Pictet’s analysis, and if the present rate of growth continues they could eventually own everything by 2030, or perhaps a bit before.

The Bloody Fight for ETF Scraps Is About to Get Even Worse (BBG)
In an increasingly crowded market, where more than 2,000 ETFs compete for assets in the U.S. alone, many upstarts face challenges. More and more firms are shuttering ETFs that fail to accrue assets, resulting in a record 98 closures last year. Others are merging and forming partnerships with larger companies. Jim Ross, who oversees State Street's ETF business and helped start the first one in 1993—the mighty SPDR S&P 500 Trust—has a blunt message for new issuers. “I talk to a lot of folks getting into this space,” Ross says. “I say, ‘Listen, if you don’t have a strategy to get to your first $50 million, don’t come in. You are wasting your money.’ ”

Man drinking pint while fleeing terror becomes symbol of London spirit (Metro UK)
A photo of victims fleeing the horrific attack in London Bridge has become a surprising symbol of Londoners’ resilience. This is because one of the people caught up in the attack, part of a crowd running away from the scene, is holding his pint. The unnamed man managed to run down the road clutching his drink, without spilling even a drop.

Man mowing lawn near tornado "was keeping an eye on it" [Photo] (KWQC, Alberta, CA)
Theunis Wessels is a man who likes to finish what he starts. On Friday evening, he began mowing his lawn in the town of Three Hills and kept mowing even as a towering tornado appeared in the distance. When his wife, Cecilia, saw him cutting the grass with the tornado at his back, she snapped a dramatic photo. Theunis took the tornado in stride and said he was “keeping an eye on it” while he continued to mow.