John Paulson

Frontrunning: February 12

  • 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)

John Paulson Puts Up Personal Holdings To Secure Credit Line As AUM Plunges

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 Regime' Hates Gold

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.

John Paulson Slammed (Again) After Citron Goes After Mallinckrodt Next, Stock Plummets

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.

Today's Biggest Loser (& Winner) - Wal-Mart Heirs' Fortunes Revealed

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...

Frontrunning: October 29

  • 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)

Icahn Reveals Latest "No Brainer" Idea: Urges AIG To Split, Sees 66% Share Upside To $100

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."

Is John Paulson The Biggest Loser From Today's Blown Monsanto-Syngenta Deal

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.

4 Mainstream Media Articles Mocking Gold That Should Make You Think

Religious imagery... peak condescension... everyone proclaiming "gold is dead"... In a nutshell, sentiment has plunged to negative levels not seen in years, if not more than a decade. Here are four mainstream media articles that provide some evidence we may be approaching a sentiment low. Some of them we're sure you’ve seen, others perhaps not. What amazes us is how they’ve all come out within the last two weeks.

 

A Homeless Harvard Graduate In The Schizophrenic Job Market

The BLS continues to perpetuate the distraction officially known as the "unemployment rate" to hide the grim reality portrayed by the labor force participation rate, which shows the true decline of employment in America. The labor force participation rate of college graduates has never been lower. In the new normal, McDonald's has a lower acceptance rate than Ivy League schools. Just when you thought you had seen everything, a new story emerges: Alfred Postell has three degrees - accounting, economics, and law - but he is unemployed and homeless.

A Wall Street Crash Course: How To Sell $1 For $100

On Wall Street, a vital skill is the ability to sell something that you know is completely worthless. Goldman Sachs did it when it sold ABACUS 2007-AC1 to investors while hedge fund manager John Paulson was betting against it. Paulson paid Goldman $15 million to peddle this junk, which was a collateralized debt obligation that would make money when millions of people lost their homes. The SEC charged Goldman with fraud, and they eventually settled for $550 million. If you're an enterprising Wall Streeter who wants to make a name for himself without breaking the rules, you can operate a tantalizing scheme that investors can't resist. It's called Shubik's Dollar Auction.

How Urban Homeowners Rigged The Housing Market And Killed GDP Growth

The phenomenon of homeowners objecting to new development is called NIMBYism, which stands for "Not In My Back Yard." The premise behind this is that homeowners don't want to risk any changes that could adversely affect their living space or the value of their property. However, it's easy to see another motive behind NIMBYism: greed. As an investor of a highly leveraged asset, the average homeowner has every reason to inflate the price of their home as much as they can. NIMBYism also contributes to inequality... and perpetuates the two-class society that we see today.