Funds News

Paulson's Advantage Plus fund lost 6.9 pct in June- Bloomberg

July 8 (Reuters) - Billionaire hedge fund manager John Paulson’s Advantage Plus fund lost 6.9 percent in June, Bloomberg News reported, citing investors.

The fund has now lost 8.8 percent through the first half of 2010, the report said.

Paulson’s Advantage and Advantage Plus funds were supposed to profit from a spike in share prices, including that of financial services companies, two clients briefed on the returns told Bloomberg.

Paulson’s firm Paulson & Co manages about $35 billion.

Paulson, who correctly bet that housing prices would fall three years ago, had raised the holdings in financial companies in the first quarter. [ID:nN17104105]

The S&P 500 Index .SPX and the Nasdaq index .IXIC lost 12 percent each in the April-June quarter, while the Dow Jones Industrial average .DJI fell 10 percent as worries about sovereign debt and the U.S. economic recovery triggered a pull back from a peak hit in late April. [ID:nN30247163]

However, Paulson has not changed his bullish views even after the stock market’s decline, the report said citing investors.

Armel Leslie, a spokesman for the fund firm, declined to comment to the news agency.

Paulson & Co could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by Dhara Ranasinghe)