John Paulson having another bad year

Discussion in 'Wall St. News' started by hughb, Oct 26, 2012.

  1. Pekelo

    Pekelo

    If the fund is huge (and his is) %-wise the position still can be small.

     
    #11     Oct 26, 2012
  2. You have gone way off track,

    you stated that he trades differently than he does with client money. The fact is that he gives his clients a choice between dollar or gold denominated funds. On top of that, he advocates the gold class, which is what he has been investing his own personal fortune in.

    Conclusion: you're wrong.
     
    #12     Oct 26, 2012
  3. zdreg

    zdreg

    #13     Oct 26, 2012
  4. newwurldmn

    newwurldmn

    Yeah. he was up 15% and 11% respectively. I think it had everything to do with size. Before 2007 he was doing well as a risk arb guy. Now he has to be a macro guy. He got the housing trade right and the gold trade. But it's not like he can fall back on his risk arb expertise anymore. He's got to keep coming up with new macro trades (that can support the asset size) and he hasn't spent the years developing that.

    http://www.pionline.com/article/20120723/CHART01/120719858

    this is from June, but you can see that his risk arb funds and his credit funds were up for 2012 as of then.
     
    #14     Oct 26, 2012
  5. Pekelo

    Pekelo

    Sure I am. Then please explain: If gold went up that year and he had a large long gold position in the fund, how come the fund ended down -40%?
    (I am not saying he didn't hold gold, I am saying the 2 performances were VASTLY different. The time is 2010 Sept-2011 Sept)

    Thanks....

    From the Yahoo article:

    " In gold-share terms, the Advantage fund is flat for the year, the firm added, not down."

    So even his gold position is outperformed by the market this year.
     
    #15     Oct 27, 2012
  6. ^^^^doood, clients can also invest in his gold fund, he's only ~50% of the fund. Ok?!

    ...say what you want about Paulson but he trades his money the same as client money, and I'd also bet he's given back plenty of his money in recent losses.
     
    #16     Oct 27, 2012
  7. Sergio77

    Sergio77

    A bad year is only bad for his clients, not for him.
     
    #17     Oct 27, 2012
  8. that 11% was only his advantage fund. His other funds were +17, +24 and +31% in 2010.

    Considering the size of his fund at that time, I would not say size was an issue. Even if his returns were just 11%, thats still impressive on a 25+ billion dollar fund.
     
    #18     Oct 27, 2012

  9. No you please explain: You said "fun fact" trade your money differently than the funds money... 1. If it has been shown that he offers his clients the EXACT same gold shares to invest in that he does, how does he trade differently? I am not sure why you keep avoiding the question.


    And the reason why the fund was down was because of gold miners. He invested heavily in miners.

    See what I did there, I answered your question even though its a moot point. You need to answer the question about him trading his money differently when in fact its up to the clients which class they want to put their money in
     
    #19     Oct 27, 2012
  10. ...except for his clients where he guarantees their losses and doesn't charge them mgmt fees. He also probably loses more with a 1% loss than most will ever make.

    Not saying the guy is a saint, but let's not just make shit up.
     
    #20     Oct 27, 2012