Paulson's Flagship Sees Worst Month in Recent History
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Hedge fund giant John Paulson had a pretty rough June...and it's all thanks to Muddy Waters.
Would Muddy Waters have not uncovered some sketchy items about Sino-Forest (OTCBB: SNOFF), of which Paulson held a tremendous stake in, the month might have gone better.
Had Muddy Waters then simply NOT published their opinion about their findings, causing shares to plummet more than 80 percent, Paulson might not need that extra prescription for Protonix.
But that's not the case, and now Paulson is faced with finding ways to recover from an 11 percent loss in June instead of taking the wife and kids on that long promised vacation to Molokini.
According to Bloomberg, due to the drop in Sino-Forest, Paulson’s Advantage Plus Fund is down 18 percent on the year. Paulson reported a loss of C$462 million (about $482 million) on the trade.
But don't count him out. Paulson was down 11 percent through August of last year, and a strong year-end performance put him in positive territory in mid-December.
Paulson's Advantage Fund fell 7.3 percent in June and is down 12 percent on the year. The Advantage Fund employs a similar strategy to Advantage Plus. The gold denominated version (investors can choose between dollar and gold denominated funds), fell 8.1 percent in June and 7 percent on the year. Advantage Plus is a gold-denominated fund.
Of all his managed funds, however, the Advantage Plus is currently showing the largest drop.
Bloomberg notes that all hedge funds fell 0.2 percent on average in June, as many worked to sort of the crisis in Greece and state of the global economy.
Would Muddy Waters have not uncovered some sketchy items about Sino-Forest (OTCBB: SNOFF), of which Paulson held a tremendous stake in, the month might have gone better.
Had Muddy Waters then simply NOT published their opinion about their findings, causing shares to plummet more than 80 percent, Paulson might not need that extra prescription for Protonix.
But that's not the case, and now Paulson is faced with finding ways to recover from an 11 percent loss in June instead of taking the wife and kids on that long promised vacation to Molokini.
According to Bloomberg, due to the drop in Sino-Forest, Paulson’s Advantage Plus Fund is down 18 percent on the year. Paulson reported a loss of C$462 million (about $482 million) on the trade.
But don't count him out. Paulson was down 11 percent through August of last year, and a strong year-end performance put him in positive territory in mid-December.
Paulson's Advantage Fund fell 7.3 percent in June and is down 12 percent on the year. The Advantage Fund employs a similar strategy to Advantage Plus. The gold denominated version (investors can choose between dollar and gold denominated funds), fell 8.1 percent in June and 7 percent on the year. Advantage Plus is a gold-denominated fund.
Of all his managed funds, however, the Advantage Plus is currently showing the largest drop.
Bloomberg notes that all hedge funds fell 0.2 percent on average in June, as many worked to sort of the crisis in Greece and state of the global economy.
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