Paulson Clients to Pull Less Than 8% in Year-End Redemptions
John Paulson, the billionaire hedge- fund manager having the worst year of his career, received less than 8 percent in year-end redemption requests for all funds, according to a memorandum sent to investors.
“Gross redemptions, before giving effect to additions of capital, will be less than 8 percent of firm assets under management, well less than our typical year-end redemption cycle,” according to today’s memo, a copy of which was obtained by Bloomberg News. “All of our funds have ample liquidity. As stated previously, we will pay redemptions according to regular practice during January, 2012.”
Paulson & Co. has about $30 billion in assets, which means withdrawal orders total about $2.4 billion, according to a person familiar with the firm, who asked not to be identified because the information is private. Redemption requests were due at the end of October.
Paulson, 55, lost 47 percent this year through September in his largest fund. The Advantage Plus Fund, which seeks to profit from corporate events such as takeovers and bankruptcies, uses leverage to amplify returns. The fund’s gold share class declined 32 percent this year through the first nine months.
Armel Leslie, a spokesman for Paulson, declined to comment on redemptions or performance.
To contact the reporters on this story: Kelly Bit in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Christian Baumgaertel at email@example.com