Here Is Who Is Getting Creamed On Today's Hewlett Packard Bloodbath... And Why It Just Is Not Paulson's Year

Tyler Durden's picture

A quick look at the top 40 holders of HPQ stock, which has tumbled 20% today (as ZH predicted yesterday), shows that i) it will be a very unpleasant weekend for a lot of people but ii) none more so than Paulson & Co, which was already down 33% or something YTD in Advantage Plus and which is eating another $141 million loss today alone. If there was any doubt that the once legendary hedge fund has become the punching bag of 2011, this should eliminate it all. Which is not to say we feel bad for JP: with billions in his checking account, we doubt he will lose much sleep over what is increasingly appearing like an inevitable unwind of the fund. We do feel bad however for holders of paper gold, as the day of the gold share class unwind draws nearer by the day. And with 31.5 million GLD shares for a total of $5.5 billion, the unwind will be, for lack of a better word, epic. The only question is when.

PS. Adding insult to injury, Moody's just revised its outlook on HPW to negative.

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Panafrican Funktron Robot's picture

All solid points.  Add to that the inevitable QE 3 in some permutation or another towards the end of August.  Paulson unloading his entire GLD stake would probably result in a one day, 3-4 point bump to the downside, quickly to be engulfed by the end of the next trading day.  I get the underlying issues with it's actual physical holdings, but at the end of the day, the vast majority of GLD buyers and sellers really don't give a shit.

narapoiddyslexia's picture

Why would he sell it? Its the only performing asset he has.

imsaul0968's picture

So Paulson has taken it prison style this year so far and one of the only things thats working is GLD and you seriously think he will sell this winner? Please...Not to mention he offers investors 2 share classes, 1 in dollars and the other in gold so to think he will be selling his GLD anytime soon is to not understand how his business works. He believes strongly that gold will go much much higher, he's a patient, passive holder

Common_Cents22's picture

depends if he has to raise cash for margin calls or for any fund redemptions, not sure what his redemption windows are.

brew's picture

Apparently, my State Farm policies will be going up...unexpectedly...

DosZap's picture


Mine too....................

And I will save this, to prove to them, they are LYING as to WHY.



BTW, look at Blackrock.............tidy outflow.

Larry Darrell's picture

I saw them on the list and had the same thought as the 2 of you.

The funny thing is, I just altered a lot of my policies with my local agent 3 weeks ago.  He's actually a pretty decent human being.  He asked why such drastic changes to my various policies, so I told him:  "The giant USS Ponzi in in for a rough ride beginning very soon.  I want everything I must provide for my family at the lowest monthly cost, and all of my miniscule aquired wealth as liquid as possible."

We then had a brief discussion on gold.  He had the "deer in the headlights" look to him after our 45 minutes together.  He smiled, but seemed uneasy.  I'm sure the market action over the last 3 weeks has hammered home some points and maybe even allowed me to contribute to the awakening of another soul.

Hephasteus's picture

That happens when you japanese nuclear holocaust a huge amount of your assets.

nyse's picture

Easy come, easy go...


p.s. Great call yesterday, BTW, Tyler. Well done, in deed.

Fred Hayek's picture

He doesn't seem to do all that great of a job when he isn't directly in on the scam.

gwar5's picture


He'll be a big fish first in line for physical redemption of GLD.

But time's awastin' and he's probably feeling a little insecure right about now, so....

There's been ongoing quiet redemptions for physical in GLD according to FOFOA.


gwar5's picture


He'll be a big fish first in line for physical redemption of GLD.

But time's awastin' and he's probably feeling a little insecure right about now, so....

There's been ongoing quiet redemptions for physical in GLD according to FOFOA.


Missiondweller's picture

Any sophisticated investor knows the risk of holding GLD rather than physical. Its a calculated risk. Certainly not one I'm any longer willing to take.

PaperWillBurn's picture

Paulson won't sell his stake in GLD. He'll redeem his shares for physical.  GLD will puke up more physical sending us higher

DonnieD's picture

not going to help unless redemptions are taken in physical, which wouldn't be a bad idea.

Stochdoc's picture

I bet that board of directors wishes it could take a mulligan on that whole Mark Hurd firing decision.

pitz's picture

Nope.  He needed to go. 

prole's picture

Unless you work for Dell I can't understand your statement.  Sounds like "We needed to torpedo the company so he had to go."

eurusdog's picture

1. Couldn't happen to a nice guy!

2. Silver is holong onto it gains today! Very interesting!

Mr Lennon Hendrix's picture

Paulson can only trade if Goldman is hedging his bets.

raki_d's picture

instead of Hedging, Assuring would be a better word

Big Corked Boots's picture

There will never be a massacre in GLD. When the fake-gold ponzi comes apart, a phone call to 1600 Pennsylvania Avenue will be made; the executive order banning gold posession will be issued; and everyone will get freshly printed 2-ply on a roll, i.e. FRN's.

Mark my words...

eurusdog's picture

1. Couldn't happen to a nicer guy.

2. Silver is holding onto it's gains from earlier. Very interesting!

TradingJoe's picture

JP will hold on to his only "winning" position to offset as much damage in the other funds as possible, then, and only then we will unwind, of course, forced by circumstances, not because he is such a great trader, allowed to pick his shorts :)))! In the end we all get what we deserve!

lolmao500's picture

Paper gold will go to 0?

espirit's picture

Actually below zero.  It will be "flushed".

mikmid's picture

Thanks for the update, sold my paper today and will wait for the unwind to buy back in.

tip e. canoe's picture

must suck to be so loaded and still get served up as a patsy...join the club John.

Yardstick of Civilization's picture

Just received an interactive brokers bulletin that gold margins are being hiked . . . .

Long-John-Silver's picture

Everyone knows that pony was going to be showing it's one trick again (and again).

Long-John-Silver's picture

I've never understood what the difference was between  any of the PC builders when they bowed low before Microsoft and loaded the worst Operating System ever stolen on each and every one of them. The consumer was offered no choice at all. You purchased your PC with it's wide open, no security at all, Operating System with a separate industry devoted to charging it users fees for protecting them from viruses and hackers. It's no wonder Android (Linux) and Apple are stomping them into the ground. Lets not forget the millions of people that have loaded a straight up Linux distribution on their PC as well. HP is not the only PC builder that's going down due to their slavish devotion to Microsoft as it's only Operating system of (no) choice.

trav7777's picture

uh...Android is a mobile phone OS.  Crapintosh sales are a statistical blip

Common_Cents22's picture

that's why apple OS hasn't been targeted as much.  The installed base is puny compared to MS.  As apple grows it will become more of a target.

Tunga's picture

No Common_Cents22; the programs that run on MACs are continuously being reduced in size and complexity. Bill Gates is a Moron of Maximum Magnitude. 

firefighter302's picture

Derivatives are just another flavor of fiat supersillyness.  And a great tool to manage the underlying asset or the UA's relationship to a reserve currancy.



chubbar's picture

Sell your winners, let your losers run!

sunnydays's picture

The day GLD blows up - some will be dancing in the streets while others wanting outright war due to be hoodwinked

Lord Blankcheck's picture

'Is Goldman Eyeing Up Paulson For The Next Panic Trade"


Martin Armstrong warning from July 4th esay."The Fate of Gold and Oil "

CPL's picture

In other news...Oracle is getting into health care...probably ran out of customers delivering their crummy database platform and piss poor support.  Can't wait to see what they do with health care.


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NotApplicable's picture

Remembering how Ellison was wanting to donate Oracle to Fedgov in order to create a national ID database, this isn't surprising in the least. Especially with the feds taking over the remains of the sick-care system.

Hephasteus's picture

You have got to be kidding me. I mean I knew computer were going to get into medical industry and sort of run it but to actually see it happening.

So all they are going to do is create problems and provide solutions. Promising the solutions are cost effective but never really delivering.

Oh regional Indian's picture

Holy cow, look at some of those losses. 640 million dollars for State Street. 

Shame that there is such god awful misallocation of capital in this faux-capitalist world, that a bunch of finance phd fools can lose this kind of money in a day and still rake in a fat year end bonus..... and a single day's loss of this magnitude could feed a few villages around the world for generations.

Vivek (ORI)

DosZap's picture


yeah, and look at the PENSION FUNDS, and BOA,and Deutsche.........................

SheepDog-One's picture

Robo, Gentleman Jim just sent you another email with his condolences and warm regards.

el Gallinazo's picture

The only thing legendary about Paulson is his ability to scam other institutions through felonious fraud.  He is a runner up to Madoff in that department.  It's really a shame they indicted and convicted Madoof.  Ruined a perfect record.

fellatio is not fattening's picture

Paulson should have a plaque on his desk  "Thank God For Groupthink"  as you can see by the list provided, NONE of these people have an original idea, they ALL buy the same shit, I guess if they ALL drop money stays where it is.  I can see the investment meetings..."OK how many funds own HPQ?  1500, Great, load up, next clusterfuck?

Papasmurf's picture

The only reason they prosecuted Madoff is he left them no choice.  He announced his guilt on camera.  If he had denied, he would have remaned free.

Justaman's picture

Anyone have any thoughts on what will happen to PSLV, PHYS, CEF, and GTU during the supposed great unwind of gold and silver ETFs?