Paulson Says Fund Made More Than $1 Billion In Citigroup Stake

Tyler Durden's picture

And so after the great subprime debacle, the latest yard winner for JP is piggybacking on the government's at all costs rescue of the biggest financial zombie in the American financial hierarchy. As a reminder as of the last publicly filed 13F, Paulson held 424 million shares of C, a drop from just over half a billion shares at June 30. In other words, the $2 pick up in Citi shares is the monetary equivalent of having Goldman tell ACA that Paulson was long the equity tranche of something or another.

From Bloomberg:

Paulson & Co., the hedge fund run by billionaire John Paulson, told clients that the firm made more than $1 billion on its Citigroup Inc. investment since the middle of 2009.

Citigroup was the fund’s most profitable bank holding, Paulson said in a letter to clients this month.

 

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JW n FL's picture

careful... getting kinda close to the flames arent you?

Don Birnam's picture

As an aside: Speaking of our banking friends, one has to love those retroactive interest rate increases and the blessings bestowed by "old federal regulations."

http://www.reuters.com/article/idUSTRE70N3I520110124

Careless Whisper's picture

ok we know the drill. next up, buy munis during the panic, (which the privately owned federal reserve bank will help create) then wait for the federal reserve bailout. make bazillions.

V

 

topcallingtroll's picture

It often works to buy during a panic and sell into complacency......wait! I think I may be on to something here! Let me think about it a bit more.

I Am The Unknown Comic's picture

From the category of "things that make me go 'WHAT?!?!?:'"

http://www.marketwatch.com/story/treasury-to-sell-warrants-to-buy-citigroup-shares-2011-01-24-832210

I know I'm old and not as wise as I should be for my age, but I really need somebody to 'splain to me how it is legal and/or possible for the US Treasury to sell 465.12 MILLION Warrants for Citibank common stock at $0.60 and $0.15 when the US Treasury has just relinquished all of their Citi (C) common stock holdings, and the share price is currently $4.87.  I am butt-freaking confused about this.  Any help understanding this would be most appreciated.   Any commentary about what this means would be a plus. 

Common_Cents22's picture

They got them thrown in for free when they took over Citi.    Nice guys!  or is it Wise guys.

ThirdCoastSurfer's picture

"The Treasury announced on Monday that it plans to sell 465 million warrants to purchase Citi shares, some with an exercise price of $17.85, which expire on Oct. 28, 2018, and others with an exercise price of $10.61, which expire on Dec. 31, 2018."

With 29.2 billion shares outstanding, a 1 for 3 split that Cramer is in favor of would lift these to about $54 and $33!!

http://www.thestreet.com/story/10982684/1/citi-warrant-sale-on-tap-for-treasury.html?cm_ven=GOOGLEN

satansanus's picture

yes and everyone who were longtime C holders got slaughtered, then raped, then buried in a mass grave.

This is not a success story

TruthInSunshine's picture

Goldman's loose lips, intentionally spreading lies, have sunken many ships (many 'valued clients' of Goldman, no less), from which Paulson & Goldman have recovered much treasure.

Don Birnam's picture

Sounds like a Wall Street remake of "Reap the Wild Wind."

JW n FL's picture

Buy Low!!

Sell High Bitchez!!!

b_thunder's picture

and who said that Fed's bubble-blowing doesn't help average people  billionaires?  QE2 is working just as Dr. Bernanke envisioned.  Well done, boys.  Pat yourself in the back.

 

Common_Cents22's picture

but wait, the treasury made $12 billion on the citi deal!    Where is my fucking dividend check?

Spitzer's picture

Paulson is a smart guy, his top gold miner holding is Kinross and Russia has money in Kinross. Takeaway, don't fight the Fed or the KGB.

trustee's picture

Anyone who is bashing Paulson.....I'd like to see your p&l reports for the past couple years. Thanks!

shawnlee's picture

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liquidpaper's picture

Whatever happened to the Paulson & Co investor letter? I know it was here because I read it last week, but I can't find it anywhere?

 

Thanks

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