Friday, 5 September 2014

John Paulson Funds Said to Post Mixed August After Stocks Gained

John Paulson, whose namesake hedge-fund firm oversees $22.8 billion, posted mixed results in his hedge funds in August as stocks and credit markets advanced while proposed mergers unraveled.
Paulson Credit Opportunities climbed 0.5 percent in August and is up 7 percent this year, according to a person with knowledge of the matter, who asked not to be named because the returns are private. The firm’s Paulson Partners fund, which bets on companies involved in takeovers, was little changed in August, leaving year-to-date gains at 5.1 percent. Its event-driven Advantage funds lost money.
Armel Leslie, a spokesman for New York-based Paulson & Co. with WalekPeppercomm, declined to comment on the performance.
High-yield, high-risk bonds returned 1.5 percent last month and the Standard & Poor’s 500 Index rose 3.8 percent as speculation that
Russia was de-escalating tension in Ukraine outweighed concern about crises in the Middle East. At the start of August more than $20 billion was erased from the market value of Time Warner Inc., Sprint Corp. (S), T-Mobile US Inc. and Walgreen Co. the day after two proposed mergers unraveled and the tax treatment of a third was reassessed.
Paulson & Co. held Sprint and T-Mobile shares, according to second-quarter filings, which dropped 24 percent and 8.7 percent during last month.
The Paulson Advantage fund, which bets on companies involved in events such as bankruptcies or spinoffs, fell 1.6 percent last month and 5.6 percent this year, the person said. The firm’s leveraged version of the strategy is up 8.3 percent in 2014. Paulson Recovery fund increased 0.9 percent last month, paring yearly losses to 0.2 percent.

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