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Paulson Advantage Said Paring Loss With Fannie-Freddie

  • Fund said to soar 9% in November, trimming 2016 decline to 16%
  • Partners merger strategy also rose; credit fund is bright spot
John Paulson

John Paulson

Photographer: Jin Lee/Bloomberg

John Paulson trimmed the double-digit losses in one of his main hedge funds last month thanks to a stake in government-sponsored entities Fannie Mae and Freddie Mac that surged on the back of the U.S. presidential election.
Paulson & Co.’s Advantage fund, which wagers on companies going through corporate events, climbed 9 percent in November, paring this year’s loss to 16 percent from more than 20 percent as of October, according to a person with knowledge of the matter. Paulson’s Partners merger strategy rose slightly, bringing losses for the year to about 27 percent, said the person, who asked not to be named because results are private.

A bright spot for the firm is the Paulson credit fund, now its second-largest strategy. The fund gained about 11 percent this year through November, according to the person. A spokesman for New York-based Paulson declined to comment on the performance.