Most of billionaire John Paulson’s hedge funds rose in May as stocks rallied and bets on mergers and credit paid off, according to a person briefed on the returns.
The Paulson Partners Enhanced fund, a merger arbitrage strategy that uses leverage to amplify gains, rose 1.9 percent last month and 4.8 percent year to date, said the person, who asked not to be identified because the information is private. The Credit Opportunities Fund gained 1 percent in May and 7.4 percent this year.
The New York-based firm, which oversees $21.4 billion, suffered losses in its event-driven strategy, the only one of its main strategies to post losses, as positions in gold miners decreased, the person said. The Paulson Advantage Plus fund, which employs leverage, dropped 3.7 percent in May and is down 2 percent this year.
Armel Leslie, a spokesman for Paulson & Co. with WalekPeppercomm, declined to comment on the returns.
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