About Us  |   Contact Us  |   Register  | Login  |   

Follow HedgeWorld on Twitter HedgeWorld on LinkedIn

Search the News
News Archive
HedgeWorld News by Region
United States / Americas
Asia / Australia
HedgeWorld News Sections
Managed Futures & Derivatives
Daily News
Other News Features
Most Popular
Reuters Headlines
Alternative Advantage Daily Newsletter
RSS Service
Sign Up For Email News Alerts

Paulson's Credit Opportunities fund up 6.6 percent through end-May: source
By Reuters
Monday, June 30, 2014 Email this story  |  News Tracker  |  Reprints  |  Printable Version

NEW YORK (Reuters)—Hedge fund manager John Paulson's credit opportunities and merger arbitrage funds were up 6.6 percent and 3.3 percent year-to-date through the end of May, respectively, easily surpassing their benchmarks, according to an investor in attendance at Paulson & Co.'s recent mid-year client event.

Paulson, who runs more than $21 billion and made headlines last week on news he amassed a large stake in Allergan Inc. of more than six million shares and supports a deal between the Botox maker and Valeant Pharmaceuticals Inc., told clients at the recent London event that merger arbitrage spreads are "becoming attractive," noting Allergan and Mallinkckrodt's acquisition of Questcor Pharma.

Paulson's merger fund is up 3.3 percent year-to-date as of the end of May, beating Hedge Fund Research Inc's Merger Arbitrage Index which is up 1.01 percent for the same period and HFRI's Event-Driven Index at 3.07 percent. Paulson's credit opportunities fund, meanwhile, is posting returns of 6.6 percent, easily exceeding HFRI's Credit Arb Index at 3.23 percent and HFRI's Distressed/Restructuring Index at 4.16 percent.

Paulson told clients his credit funds are "outperforming in a low-yielding environment" and that his current credit portfolio is "fully invested" to drive performance through 2015, according to the investor who attended Paulson's June 12 event. Paulson said his firm has a "skilled team to exploit event-driven credit opportunities," according to the investor source.

A spokesman for Paulson & Co. declined to comment. Paulson & Co is one of the hedge fund industry's biggest firms, and thanks to its strong returns last year, Paulson himself earned $2.3 billion last year, according to Institutional Investor's annual ranking.

By Jennifer Ablan

Send This Story to a Friend | Order Reprints Online
Send Feedback to the Editors | Receive News Alerts by Email
Display Printable Version of This Story

Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.

Lipper    Privacy   User Policy  Legal Disclosure Copyright/DMCA  Site Map    FAQ    Glossary  Thomson Reuters for Hedge Funds
All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of HedgeWorld content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. HedgeWorld is a registered trademark of Thomson Reuters.