Paulson Said as Little as Possible When His Fund Sold AIG Stock
- Hedge fund cuts stake as John Paulson sits on insurer’s board
- Fund firms have different reporting rules than directors
Billionaire John Paulson Plans Exit From AIG Board
When a board member of a publicly traded U.S. company sells even a small personal holding, the director typically has just two business days to disclose the transaction, under securities rules to promote transparency. But when John Paulson’s hedge fund firm reduced its American International Group Inc. stake by more than 4 million shares in the fourth quarter, there was no filing on the trades for weeks, even though the billionaire is on the insurer’s board.
Paulson & Co.’s Feb. 14 filing was a Form 13F, which doesn’t include the date and price for share sales -- information that would be reported on an individual director’s filing, known as a Form 4. Instead, the Form 13F is a list of how many shares the hedge fund firm had in various companies as of Dec. 31, a quarterly requirement for large money managers.