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After Brief October Respite, Mauling Of Paulson & Co. Investors Resumes

Tyler Durden's picture




 

Following a widely publicized bounce in the Paulson & Co. performance in October, a time in which even the since retired beta chaser extraordinaire Bill Miller probably made money, and following the mocked by Zero Hedge 13F announcement that John Paulson had sold gold exposure to buy even more Bank of America stock, we now learn that the fund's LPs have once again resumed crash positions, with the performance of his fund dropping back to 2011 lows at -46% through November. Bloomberg brings us details: "Paulson’s Advantage Plus Fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, declined 3.6 percent last month. The fund’s gold share class dropped 2.7 percent in November and 29 percent this year. Paulson & Co., which is based in New York and manages $28 billion, has lost money this year on investments including Citigroup Inc., Bank of America Corp. and Sino-Forest Corp., the Chinese forestry company accused by short-seller Carson Block of overstating timberland holdings. Paulson’s biggest funds, Advantage Plus and Advantage ... have $11 billion in combined assets. The dollar-denominated Advantage Fund fell 3.3 percent in November and 32 percent this year. Its gold share class slumped 1.5 percent last month and 13 percent in 2011. Paulson investors can choose between dollar- and gold-denominated versions for most of the firm’s funds." Perhaps it would be easier for Bloomberg to track what the former Bear trader has actually made money on in 2011. We are confident they would be surprised by the list.

Yet there is one thing Paulson has still made some money on:

The Gold Fund, which can buy derivatives and other gold- related investments, rose 1.3 percent in November and 11 percent this year.

Yup - the same thing we have said since January 1, 2011 (and actually March 2009) is the only worthwhile investment. And we do it for free.

As for everything else, it has been a disaster:

The Recovery Fund, which invests in assets Paulson believes will benefit from a long-term economic upturn, fell 4 percent in November and 28 percent this year. The gold share class declined 2.2 percent last month and 12 percent in the year’s first 11 months. Paulson has been betting on a U.S. economic recovery by the end of 2012.

 

The Paulson Partners Enhanced Fund, which invests in the shares of merging companies, decreased 0.6 percent last month and 18 percent this year. Its gold share class advanced 0.7 percent in November and declined 0.9 percent in 2011.

 

Paulson’s Credit Opportunities Fund slumped 3.6 percent last month and 18 percent this year. Its gold shares dropped 1.6 percent in November and gained 0.3 percent in 2011.

All this just goes to show: when one is at the right time and the right place, and has hired the right smart people to make investment decisions, it doesn't matter just how horrible of a stock picker one actually is.

 

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Tue, 12/06/2011 - 10:39 | 1950688 GeneMarchbanks
GeneMarchbanks's picture

He should just buy K-rands for all his clients and STFU for all time.

Tue, 12/06/2011 - 10:39 | 1950690 ElvisDog
ElvisDog's picture

Awesome. Sort of like the yang to the yin of bankster looting.

Tue, 12/06/2011 - 10:40 | 1950692 williambanzai7
williambanzai7's picture

With funds like this who needs enemies...

Tue, 12/06/2011 - 11:08 | 1950787 Dr. Engali
Dr. Engali's picture

Looks like there is a Paulson investor who is losing their ass junking everbody saying any thing bad about him. Or maybe it is Paulson himself trying to keep up with what is going on in the markets.

Tue, 12/06/2011 - 10:40 | 1950694 orca
orca's picture

Gold is up ~21% YTD, but his gold fund (which supposedly is long gold) is down 11%? Respect!

Tue, 12/06/2011 - 11:31 | 1950851 ZeroPower
ZeroPower's picture

Not every one of his funds is a gold fund:

The Gold Fund, which can buy derivatives and other gold- related investments, rose 1.3 percent in November and 11 percent this year.

Tue, 12/06/2011 - 10:41 | 1950698 JPM Hater001
JPM Hater001's picture

"invests in assets Paulson believes will benefit from a long-term economic upturn"

Well there is the problem.  You are investing in rainbows and lollipops.

Tue, 12/06/2011 - 10:53 | 1950737 jonan
jonan's picture

personally i prefer red vines and tootsipops, yet i digress...

Tue, 12/06/2011 - 10:42 | 1950700 orca
orca's picture

And by the way: Tyler, thanks for MBI, just exitted 10,76, having entered solely on your piece last week 8,96

Tue, 12/06/2011 - 10:47 | 1950718 LawsofPhysics
LawsofPhysics's picture

Likewise Tyler.  Thank you sir, may we have another!

Tue, 12/06/2011 - 11:36 | 1950869 Oztralian
Oztralian's picture

how's that FAZ working out for you?

Tue, 12/06/2011 - 10:43 | 1950703 The trend is yo...
The trend is your friend's picture

"right time and right place"

 

that's all it really comes down to.

Tue, 12/06/2011 - 10:44 | 1950711 LawsofPhysics
LawsofPhysics's picture

Awesome, better put Paulson on suicide watch.  Better yet, just give him the rope already.

Tue, 12/06/2011 - 10:46 | 1950715 youngman
youngman's picture

He should buy those Japanese bonds...you get a little gold piece with them..so at least you get something...

Tue, 12/06/2011 - 10:52 | 1950735 RobotTrader
RobotTrader's picture

Gold getting brutalized again

Everyone is piling back into U.S. Treasuries

The last bastion of safety and security

King World News must be dumbfounded

Tue, 12/06/2011 - 10:57 | 1950746 MFL8240
MFL8240's picture

Isnt it amazing how courrpt this who ganster riden country is?  The attack on Gold is coming from none other than the liar at the Fed, he needs to sell this worthless papers so he is actively participating in the destruction of Gold.  It will not last, sit tight and let all the children play with Gold contracts, I own bullion and WOULD NEVER buy and ETF unless it was issued by a country other than this one.

Tue, 12/06/2011 - 11:16 | 1950799 Village Smithy
Village Smithy's picture

Is that a hat-tip to Sprott?

Tue, 12/06/2011 - 11:00 | 1950750 achmachat
achmachat's picture

why do you keep saying "everyone"?

show me one person who sold real physical gold to "pile back into U.S. Treasuries".

And I am not talking about daytraders who use GLD just like any other random paperstock... real physical Au!

Tue, 12/06/2011 - 21:51 | 1953385 StychoKiller
StychoKiller's picture

Usage of absolutes such as "everyone", "never", "always", etc, usually indicates a logical flaw in the thought process.

Tue, 12/06/2011 - 11:28 | 1950838 High Plains Drifter
High Plains Drifter's picture

well with the tribe firmly in control of the regulatory agencies and with everything else it seems, is it any wonder?   the time perhaps will come when people on the outside quit worrying about paper trading so much and then pricing the metals according to supply and demand principles............but i am not going to hold my breath. too many bow the knee to city of london on these issues. what power it must be, to be able to set the prices of real money each day morning and afternoon. but , ok, i digress. let us continue to grouse around about silly political issues here in the gulag called amerika and just pretend what we think really matters.......its time for revolution folks..........plain and simple.......

Tue, 12/06/2011 - 10:52 | 1950736 junkyardjack
junkyardjack's picture

Well the recovery fund invests long-term which I would assume is 60-300 years so give it some time before making a quick judgement on its performance

Tue, 12/06/2011 - 10:55 | 1950743 AngryGerman
AngryGerman's picture

let's just hope for him he doesn't have high water-marks in place, or he'll never see a dime of his 20% again...

Tue, 12/06/2011 - 10:56 | 1950740 AngryGerman
AngryGerman's picture

if you're M&A, and there are no M&A, i guess you are fucked.

sorry, correction:

your investors are fucked.

you still made 2% in management fee, in this case 220 mn...

 

 

 

Tue, 12/06/2011 - 11:04 | 1950764 AngryGerman
AngryGerman's picture

sorry, mf for adv and adv plus is only 1.5%. thus only USD 165mn this year.

and wtf 0% performance fee (???)

makes you wonder...or not, since he doesn't really caret hen if he is losing money for his clients. as long as the pension funds do not withdraw...

Tue, 12/06/2011 - 10:54 | 1950741 MFL8240
MFL8240's picture

This is the next MF Glaobal to go down.  Hold on for the ride.

Tue, 12/06/2011 - 11:07 | 1950782 High Plains Drifter
High Plains Drifter's picture

http://www.insidermonkey.com/blog/2011/11/01/paulson-hedge-fund-gross-redemptions-less-than-8-of-firm-assets/

 

its amazing that most of his clients seem to be satisfied with his performance and will not leave his fund. too bad. idiots...

Tue, 12/06/2011 - 10:58 | 1950748 riley martini
riley martini's picture

 Madoff investors are getting a better return .

Tue, 12/06/2011 - 11:09 | 1950788 High Plains Drifter
High Plains Drifter's picture

madoff money is in the bank of israel collecting interest for any member of the sand people tribe that want to go and check on it. not only that but the crybabies probably got money from other places to , in order to recoup their "losses"   therefore they have doubled their money and i am sure, you know who got it in the shorts about all of this ...........we the people, in order to form a more perfect union.......of course.......

Tue, 12/06/2011 - 10:58 | 1950749 Robslob
Robslob's picture

 

 

Paulson is still rich...his clients still broke...and the wheel of life keeps rolling...

Tue, 12/06/2011 - 11:08 | 1950785 Village Smithy
Village Smithy's picture

I think that's what annoys me so much when I watch CNBS, they have a never ending stream of pundits all pontificating about where the economy is going and whether or not small business is growing etc. etc. The truth is these guys are all so rich none of it matters to them in the least. They're not not losing any sleep worrying about mortages, jobs, education funds or retirement funds.

Tue, 12/06/2011 - 11:23 | 1950824 High Plains Drifter
High Plains Drifter's picture

they are all on the general electric band wagon and any of them that are not members of the tribe are doing their best to kiss jewish ass and maintain their standings in the eyes of sand people tribal leaders as good and honest and hard working and of course , righteous gentiles , according , not to sharia law but to noahide laws which were implemented in 1991 by george h w bush , at the bequest of the haredies.....real cute.........

Tue, 12/06/2011 - 11:01 | 1950753 Dr. Engali
Dr. Engali's picture

It's all good. On those assets at 2 and 20 he is doing pretty well. Even if the 20 is nothing. With performance like that who knows for how long, but right now he is smiling on the inside.

Tue, 12/06/2011 - 11:04 | 1950768 AngryGerman
AngryGerman's picture

perffee is 0%, see above

Tue, 12/06/2011 - 11:26 | 1950830 Kayman
Kayman's picture

"Even if the 20 is nothing."

That's the problem. Paulson should be taking 20% of the losses.

Tue, 12/06/2011 - 11:01 | 1950756 High Plains Drifter
High Plains Drifter's picture

paulson should have listened to robo traitor........

Tue, 12/06/2011 - 11:13 | 1950794 I am a Man I am...
I am a Man I am Forty's picture

And what, pray tell, convinced him that there was going to be an economic upturn?  C and BAC bets were beyond stupid.

Tue, 12/06/2011 - 11:54 | 1950929 monopoly
monopoly's picture

When they buy the dollar I just smile. Last one on the trash heap. Of that I have no doubt.

Tue, 12/06/2011 - 13:19 | 1951279 loveyajimbo
loveyajimbo's picture

Didn't this clown used to be somebody a long time ago??

Tue, 12/06/2011 - 13:28 | 1951326 Piranhanoia
Piranhanoia's picture

The Tilson/Paulson contest. Both down +40% YTD.  

This could be a real horse's ass race.

Tue, 12/06/2011 - 13:53 | 1951474 LiquidDreams
LiquidDreams's picture

Was Paulson ever good? Or is his only claim to fame piggybacking Michael Burry?

 

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