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Complete Paulson 2011 Letter

Tyler Durden's picture


There are those who voraciously, and blindly, read any and all hedge fund reports, allowing the already useless information to enter one brain hemisphere and exit the other, just so they can brag that they read such and such's monthly or year end letter. Frankly, we pity them, especially when in their attempt to ape success they confuse luck (which is responsible for 99% of hedge fund outliers) for skill, and in doing so constrain their minds even more. At least hopefully they don't spend money on self-improvement books. As for trading recommendations, by the time an idea is in writing, the time to implement it is long gone. Anyway, for precisely this subet of people we provide the Paulson 2011 year end letter. Which is 102 pages. It is amazing how when one is printing money, one can get away with two paragraphs of year end ruminations and the LPs will be delighted. When, however one has brought AUM from $32 billion to under $20 billion net of redemptions, much more reading material is required to justify the 2 and 20, especially if the proceeds are used to invest in AAPL (and speaking of Apple, we wonder how long before the company starts charging a fee of 2 and 20 from all of its shareholders). We won't spend much time dissecting the letter of a fund which blindly invested nearly half a billion in a company that two kids with an office exposed as fraud, suffice to copy and paste the following gem: "We believe this outperformance demonstrates our superior security analysis and selection due to our research edge." Yup, mmmhmmm. All this and much more in the enclosed paperweight.

Incidentally, when we said 10 days ago that we have "Horrible News For Goldbugs - Paulson Is Bullish On Gold Again", we were not kidding:

And so the Paulson overhang is back. Couldn't Paulson just go ahead and buy Bank of America or some other worthless biohazard again? All that remains is for Roubini to say he prefers gold over spam (and always has, he was merely "misunderstood") and the crash will be imminent.


Or perhaps we will learn following the next $1000 up move in gold that Gartman will have been long gold in Vietnamese Dong.


Well, at least cheap entry points will be available.

So far the thesis is playing out, and the cheap entry points are here again.


h/t Valuewalk


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Wed, 02/29/2012 - 20:53 | Link to Comment rsnoble
rsnoble's picture

Yes, these assholes are so smart they needed a $700 billion bailout for their stupid mistakes. And that was just the smart.

Apparently all you need to suceed is a big vocabulary and no conscious.

Wed, 02/29/2012 - 21:02 | Link to Comment hellas4life
hellas4life's picture

700 billion and trillions of emergency loans.  not to mention the continued bailout in the form of zirp and sham mortgage settlements

Wed, 02/29/2012 - 20:54 | Link to Comment tallen
tallen's picture

Dam I wish I had the physical copy, I could do with some more toilet paper.

Wed, 02/29/2012 - 21:28 | Link to Comment bdc63
bdc63's picture

I'd like to have a copy too ... I'm outta kindling and it cold out tonight ...

Wed, 02/29/2012 - 20:55 | Link to Comment Atomizer
Atomizer's picture

When Paulson is lying, he becomes a stuttering idiot. That’s what I caught on the Con, con, K,k,k,k,k.. ontext page.

Wed, 02/29/2012 - 20:53 | Link to Comment rsnoble
rsnoble's picture

And that was just the "beginning". Damn beer.

Wed, 02/29/2012 - 20:55 | Link to Comment Bill D. Cat
Bill D. Cat's picture

I loves me some financial snark . Well said T , well said .

Wed, 02/29/2012 - 20:55 | Link to Comment Piranhanoia
Piranhanoia's picture

Do you want to know what a movie is about before you see it?   sure.  Do you want to know if it's good from some opinion with an asshole with an unpleasant roid?

Wed, 02/29/2012 - 20:56 | Link to Comment bob_dabolina
bob_dabolina's picture

I'm not sure if I should read this while I'm shitting or use it to wipe when I'm done

Wed, 02/29/2012 - 20:59 | Link to Comment Conman
Conman's picture

When you got buddy's like Geithner to bail you out, you can be pompous like Paulson.

Hopefully the whole AIG-Goldman fiasco brings Timmy down and he somehow takes Paulson with him. Hah yeah right! One can dream can't he?

Thu, 03/01/2012 - 01:00 | Link to Comment chindit13
chindit13's picture

Pardon me, but Paulson runs a hedge fund, not a bank.  He didn't get bailed out.  If you are in doubt, contact any of his limited partners.

Thu, 03/01/2012 - 07:52 | Link to Comment davey
davey's picture

Dennis gartmen is the worst idiot on calling anything having to do with PM. His calls are purely said for his own benefit. He's the asshole who said sell gold at 550.00.

Wed, 02/29/2012 - 20:58 | Link to Comment reTARD
reTARD's picture

 he Paulson unds suck! Just my omment.

Wed, 02/29/2012 - 21:13 | Link to Comment He_Who Carried ...
He_Who Carried The Sun's picture

I read the following somewhere in this gem:

...after studying Lehman's balance sheets, it became clear to us (Paulson's) that the market was overrestimating Lehman's losses...

(thought it very funny, don't remember the entire nor exact quote...) *lol*

Wed, 02/29/2012 - 21:22 | Link to Comment Alchemist1
Alchemist1's picture

Anti-Tyler trade long AAPL / short gold is at a new high

Wed, 02/29/2012 - 21:25 | Link to Comment shuckster
shuckster's picture

Ever since Paulson became a trillionaire he stopped putting any effort into his work - most of this looks cut and pasted off Yahoo Finance

Wed, 02/29/2012 - 21:28 | Link to Comment mayhem_korner
mayhem_korner's picture



The only way this Epistle de Pablum could have been more worthless is if it was printed on FRNs.

Wed, 02/29/2012 - 21:57 | Link to Comment Master Pimp
Master Pimp's picture

"At least hopefully they don't spend money on self-improvement books "!

ahahahahhaah thats a good one!

from fight club

Wed, 02/29/2012 - 22:36 | Link to Comment Seasmoke
Seasmoke's picture

how can you spell FUCK without the F and C

Wed, 02/29/2012 - 22:37 | Link to Comment cjbosk
cjbosk's picture

Tyler(s), I'm still awaiting your trailing 10, I do believe I asked for them several months ago but to no avail...

I'm gonna bet his alpha alone is better than your trailing 10, just saying

Thu, 03/01/2012 - 00:55 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

One hit wonder.

Thu, 03/01/2012 - 01:47 | Link to Comment mkhs
mkhs's picture

This guy is good.  A 10.5% loss in gold in this bear market.  That takes talent.  Longs down 12% and hedge down 4%: not everyone can do that.

Thu, 03/01/2012 - 01:46 | Link to Comment Yen Cross
Yen Cross's picture

 I have to break down the : Paragraphagal Structure.

   Rest assured/ I.ll lay some literary thought on it //

Thu, 03/01/2012 - 08:37 | Link to Comment covert
covert's picture

so, what's the difference?


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