Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

John Paulson Has Great Traders, Seriously

According to The Wall Street Journal, John Paulson lost C$562 Million in Sino-Forest this year. Earlier this week Bloomberg estimated Paulson’s losses at C$700+ Million. We did our own calculations and assumed that Paulson’s traders were just average traders. Based on our assumptions Paulson’s losses should have been between C$600-C$650 Million. Fortunately, Paulson’s losses this year were almost C$100 less than the number we calculated. This could mean two things. Either John Paulson started selling Sino-Forest before Muddy Waters’ report was released, or Paulson has great traders who executed stock sales at better prices than each day’s average trade-weighted market price, or both. We need more information to decide what’s true.

best gold ETF

Luckily Paulson revealed more information about his holdings. Here is an excerpt from the WSJ article:

Paulson & Co., according to the letter, averted some losses as it sold some Sino-Forest shares between C$19 and C$25 starting in early 2010 through May 2011. Sino-Forest shares closed Thursday at C$2.91 in Toronto. The letter said that in May 2011, Paulson held 31 million shares, just over 12.5% of the shares outstanding.

So, Paulson started selling his shares before the Muddy Waters’ report. We thought about this possibility and estimated Paulson’s losses at C$588 Million. Paulson lost only C$562 Million though. This means his traders’ skills helped them avoid C$26 Million in additional losses. John Paulson has great traders indeed!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.