Paulson Advantage Plus Down 47%
Oct 10 2011 | 2:34pm ET
In a year filled with red-soaked months, September may have been the worst for Paulson & Co.
Liquidity moves markets!Follow the money. Find the profits!
The New York-based hedge fund suffered big losses in all of its hedge funds last month—including those that had, until now, bucked the trend and performed well. The firm’s largest fund, Advantage Plus, fell almost 20% last month and is now down 47% on the year. Advantage will need to return 90% in the fourth quarter simply to break even.
The less-levered version of that fund, Advantage, lost 12% last month and is now down 32% with just three months left to the year.
Worse still for firm founder John Paulson is that his gold bets, the savior this year of both his own fortune and something of his reputation, took a big hit last month. The precious metal lost 11% last month—but Paulson’s gold-only fund fell 16.4%, cutting its year-to-date gains to just 1.e%. Gold itself remains up 16% on the year.
The $30 billion firm’s Recovery Fund is also in dire straits, losing more than 14% in September and 31% year-to-date