Pages

Pages

Thursday, August 11, 2011

Paulson Flagship Fund Hit Hard by Market Rout

CNBC has apparently received some inside information on the recent performance of hedge funds managed by John Paulson. Excerpt:
Hedge-fund titan John Paulson’s summer swoon continued last week, rendering his Advantage Plus Fund down more than 31 percent through Friday’s market close, according to people who have been briefed on the results.

Previously it was reported that he was bearish on Treasury bonds which have rallied lately:

In 2009, John Paulson made a different “call” that has yet to pan out; that is, the billion-dollar leader of Paulson & Co. expressed that monetary stimulus efforts by the Fed could only lead to inflation and higher treasury yields.
It would be interesting to see how these alleged losses in these hedge funds break down. If much losses have occurred due to a Treasury rally, it would be a shame for his investors if this short position was first entered into due to a belief that Fed purchases of Treasury securities is by itself inflationary.

1 comment:

  1. some sick and twisted part of me loves to hear this. LOL

    Ironic that neo-liberalism is being destroyed by the bond market. I guess they don't read "supply/demand" properly. LOL

    31%!!! Yikes!! This dude can't take no for an answer eh!?! That's alot of losses in my book (maybe not his though I don't know).

    MMT is on the rise, b/c nothing speaks louder to these guys than money.

    ReplyDelete