This page has been archived and commenting is disabled.

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.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/24/2011 - 12:02 | 898825 JW n FL
JW n FL's picture

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

Mon, 01/24/2011 - 12:25 | 898826 Don Birnam
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

Mon, 01/24/2011 - 12:05 | 898827 Careless Whisper
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

 

Mon, 01/24/2011 - 13:49 | 899203 topcallingtroll
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.

Mon, 01/24/2011 - 12:10 | 898854 I Am The Unknow...
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. 

Mon, 01/24/2011 - 12:52 | 899001 Common_Cents22
Common_Cents22's picture

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

Mon, 01/24/2011 - 16:36 | 899896 ThirdCoastSurfer
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

Mon, 01/24/2011 - 12:18 | 898882 satansanus
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

Mon, 01/24/2011 - 12:19 | 898893 TruthInSunshine
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.

Mon, 01/24/2011 - 12:26 | 898931 Don Birnam
Don Birnam's picture

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

Mon, 01/24/2011 - 12:33 | 898953 Midas Mulligan
Midas Mulligan's picture

+++

Mon, 01/24/2011 - 12:21 | 898903 JW n FL
JW n FL's picture

Buy Low!!

Sell High Bitchez!!!

Mon, 01/24/2011 - 12:31 | 898947 b_thunder
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.

 

Mon, 01/24/2011 - 12:54 | 899015 Common_Cents22
Common_Cents22's picture

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

Mon, 01/24/2011 - 14:21 | 899356 Spitzer
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.

Mon, 01/24/2011 - 18:36 | 900360 trustee
trustee's picture

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

Mon, 01/31/2011 - 07:34 | 919661 shawnlee
shawnlee's picture

wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.wb7, not that your brilliant mind needs more creative ideas, but following up Faber's interview and his comment about Obama as a "prostitute"... Barack in a tube top, mini skirt and high heels could be a classic.
mcp certification \ mcpd \ crm certification \ mcse 2008 \ mcdst \ mcse \ pass4sure

Tue, 02/01/2011 - 09:40 | 923349 liquidpaper
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

Mon, 05/16/2011 - 21:34 | 1281420 tony1983
tony1983's picture

Windows 7 Serial Key are for you now!Windows 7 key store is authorized reseller for the software vendors mentioned by Microsoft.We are committed to providing authentic software such as windows 7 ultimate key and office 2010 professional plus key to prevent our software users.All of our softwares are free shipping! Order windows 7 and all windows product key Only in 24 Hours delivery with great discount promotion and best service.
we also provide:server 2003 product key | windows xp media center serial | office 2007 professional plus serial | windows server 2008 serial | microsoft office 2007 professional key | office 2007 enterprise product key | windows 7 home premium serial | windows vista serial | microsoft office professional plus 2007 product key | office 2007 standard key |windows 7 professional serial | upgrade to windows 7 professional | microsoft office 2010 professional plus serial | office 2007 ultimate serial | office 2010 product key |windows xp key | windows xp home edition with service pack 3 product key | windows 7 ultimate serial key | microsoft office 2007 activation key | windows 7 activation key |windows xp professional sp3 cd key | exchange server 2007 product key |

Do NOT follow this link or you will be banned from the site!