John Paulson just can’t seem to catch a break lately.
Maybe Paulson is just a little early out the gate and hedge fund manager David Einhorn is right when he says that “the [gold] mining companies have the potential to generate double-digit free cash flow returns and offer attractive risk-adjusted returns even if gold does not advance further,” but that doesn’t help the fact that, right now, Paulson’s gold fund was down over 6.5% year-to-date throughteh middle of December – it was Paulson’s one bright spot.
Paulson really is a great hedge fund manager. His performance is down lately but the man knows his stuff. His Advantage Plus Fund, which is his worst performing fund this year, has returned 142% since 2007. That fund returned 38% in 2008, the same year the average equity fund lost roughly 20%. It went on to return 21% in 2009 and 17% in 2008. Then, there was 2011.
Paulson’s Advantage Plus fund was down 52% as of December 16 and, given the market, will likely end the year down at least 50%. Reuters reports Paulson’s Advantage fund fell 6% in the first two weeks of December, bringing its year-to-date losses to -36%.
John Paulson will catch a break eventually. Until then, the vast majority of his clients are staying put – Paulson “had received gross redemption requests totaling less than 8 percent of the firm’s assets under management.”
In any case, this is one year Paulson will be happy to put to rest.