John Paulson’s (Paulson & Co.) 2010 returns made the headlines recently. On December 17th, Financial Times reported that John Paulson‘s flagship $9 Billion Advantage Plus fund returned 3.7% through November and 14.3% through December 10th. According to one investor the fund returned 10.2 % during the first 10 days of December. Financial Times also reported the returns for Paulson’s other funds:
“The firm’s Credit Opportunities Fund is up 4 per cent so far this month, bringing its performance to 16.5 per cent for the year so far.
Mr Paulson’s Recovery Fund, which is focused on the US economy and its prospects, also returned 10.2 per cent over the first 10 days of December. The Recovery Fund is now up 19.4 per cent so far this year.
…The Paulson & Co Gold Fund, which invests in mining stocks, derivatives and physical gold, is up about 35 per cent.”
A couple of days later, Marketwatch reported that Paulson’s Advantage Fund returned 1.8% through November. Advantage Plus fund uses leverage whereas Advantage fund doesn’t. As a result, Advantage fund’s returns are less than Advantage Plus fund’s returns in up years. Marketwatch also verified the 3.68% return for Paulson’s Advantage Plus fund through November.
Finally yesterday Daily Mail reported that John Paulson’s Paulson & Co returned around 20% in 2010, giving him a personal gain of nearly $1.3 billion. In contrast, here is what UK hedge fund managers are expected to have made in 2010:
“Colm O’Shea of fund group Comac is reported to have made nearly £10m last year as did Jonathan Ruffer, of the eponymous investment company.
Crispin Odey, founder of Odey Asset Management took home £36.4m.
He previously made £28m betting against Britain’s banks during the depths of the global financial crisis and bagged his latest profit after buying banking stocks at the bottom of the market.”