“Now that we are gearing up to bring a handful of cases in this area, I suggest that we keep in mind that the vast majority of the losses suffered had nothing to do with fraud and the like and are more fairly attributable to lesser human failings of greed, arrogance and stupidity of which we are all guilty from time to time.”
Paulson had another abysmal month in March when his Advantage funds both dropped 7%, bringing their YTD loss to -15%, and making Paulson one of the worst performers YTD, in the company of such former HF luminaries as Chase Coleman, Bill Ackman and Larry Robbins. His return since then is likely even worse, considering his substantial stake in Allergen which earlier this week plunged 20% after the Pfizer deal was called off.
"I bought them low and I sold them high. It was very good timing"...
"Bitcoin is interesting to me as a route for capital flight. I am not opining on the long-term viability of bitcoin - I do think there is something there - but I am long bitcoin specifically to capture capital flight from China."
- Yellen's dilemma: A downturn with no easy response (Reuters)
- Clinton, Sanders clash over Obama as they vie for minority votes (Reuters)
- Risk Grows of Markets Sparking Recession (WSJ)
- Global Stock Rout Eases Amid Oil Advance as German Bonds Decline (BBG)
- U.S. Benchmark Yield Will Be at Record Low in March at This Rate (BBG)
- Oil Prices Rally on Hopes of Production Cuts (WSJ)
Central Banks Are the PROBLEM, Not the Solution ... the DISEASE, Not the Cure
Back in August we noted that John Paulson managed to get himself and his investors involved in two rather dubious "firsts" in 2015: Puerto Rico became the first US commonwealth in history to default, and Greece became the first developed country to default to the IMF. Paulson had invested in Puerto Rican and Greek assets. Now, amid a client exodus, the billionaire is putting up his own holdings to secure a longstanding line of credit with HSBC.
Why the Black Hole of Deflation Is Swallowing the Entire World … Even After Central Banks Have Pumped Trillions Into the EconomySubmitted by George Washington on 01/24/2016 14:58 -0400
We Ask 3 Top Economists to Explain What the Heck Is Going On ...
There’s only one investment we can think of that many people either love or hate reflexively, almost without regard to market performance: gold. And, to a lesser degree, silver. It’s strange that these two metals provoke such powerful psychological reactions - especially among people who dislike them. Nobody has an instinctive hatred of iron, copper, aluminum, or cobalt. The reason, of course, is that the main use of gold has always been as money. And people have strong feelings about money. From an economic viewpoint, however, money is just a medium of exchange and a store of value. Efforts to turn it into a political football invariably are signs of a hidden agenda, or perhaps a psychological aberration. So, let’s take some recent statements, assertions, and opinions that have been promulgated in the media and analyze them.
It has not been a good year for former Bear trader "right person at the right time" with his subprime short, John Paulson who after getting slammed on Valeant, if not quite as badly as Ackman, moments ago saw a quarter of his investment in Mallinckrodt - where he is a top3 holder - wiped out, when Citron tweeted that "MNK has significantly more downside than Valeant" and is a far worse offender of the reimbursement system.
If you think you're having a bad day (amid the post-payrolls turmoil), consider "America's richest woman" Christy Walton - the widow of Wal-Mart's John Walton. According to newly-released documents, her $32 billion wealth is actually around $5bn (as the assumption that John passed on the bulk of his wealth to his wife was wrong) plunging from 18th richest person in the world to just 280th. However, today biggest winner is her son, Lukas Walton who vaults to 103rd richest in the world as his fortune is revealed at $11 billion. Now those are first-world problems...
- Fed puts December rate hike firmly on the agenda (Reuters)
- Charting the Markets: A More Hawkish Fed Rattles Investors (BBG)
- China to modernize and improve fiscal and tax systems (Reuters)
- Deutsche Bank to Cut 35,000 Jobs in Overhaul (WSJ)
- Deutsche Bank Said to Near $200 Million Sanctions Settlement (BBG)
- Barclays profits drop as it abandons cost-cutting targets (FT)
It has been a while since Icahn, who is still looking for a $200+ print on AAPL stock courtesy of corporate buybacks, issued a "no brainer" investment alert. He did that moments ago, when he revealed a "large position" in AIG, whom he is now urging to follow John Paulson's advise in order to hit a $100/share price, by doing two things: "Pursue tax free separations of both its life and mortgage insurance subsidiaries to create three independent public companies" and to "embark on a much needed cost control program to close the gap with peers."
The size of Paulson's stake is unknown, however we do know that the top 20 shareholders top out at about $150 million in SYNN holdings. Assuming a $200 million Paulson stake, that means that Paulson's paper losses were likely $30-40 million today (depending on the price he build up his stake), losses which may have been booked if Paulson decided to cash out.
"The wealth management arm of Bank of America Merrill Lynch is liquidating its clients’ money from one of Paulson & Company’s funds and has put another fund under "heightened review,'" NY Times reports. As it turns out, this was not the year to be long Greece and Puerto Rico.