BOSTON Dec 7 Hedge fund manager John Paulson
told his clients on Friday evening that his funds experienced
mixed returns in November with softer gold prices weighing on
The billionaire fund manager, whose New York-based Paulson &
Co. oversees $20 billion in assets for clients, recently told
investors that losses in Europe hurt but he was more optimistic
about the housing industry.
On Friday Paulson said his Paulson Partners fund, which
specializes in merger-arbitrage, climbed 1.44 percent in
November and is up 6.67 percent for the year, a person familiar
with all of Paulson's funds said.
Paulson also reported that the firm's biggest portfolio, the
Credit Opportunities fund, was flat for the month and is up 5.59
percent for the year. The credit funds have more than $6 billion
A slide in gold prices during November, however, weighed on
both the Advantage fund and the Gold fund. Advantage fell 4.66
percent last month and is now off 16.68 percent for the year
while the Gold fund dropped 11.56 percent and is off 20.57
percent for the year.
The numbers deliver more bad news to some Paulson investors
at a time the manager's every move is closely monitored. He has
been among the industry's most famous fund managers ever since
he earned billions on a bet against the overheated housing
market in 2007.
With the Advantage funds down again in November it is almost
impossible for Paulson to deliver positive numbers in this
strategy this year. Last year Paulson made headlines when he
suffered heavy losses in the funds thanks to an overly
optimistic view on economic recovery.
Although the losses in Advantage are closely watched, the
funds are no longer the firm's largest and overall some 60
percent of firm assets are in the black.
Late Friday there was also a piece of good news for Paulson
when Canada approved Cnooc Ltd's acquisition of Nexen, in which
Paulson holds a large stake.