John Paulsons troubles persisted in November.
A first look at the performance of three of his
funds illustrates the difficulty the hedge fund manager is
experiencing in turning around his crumbling funds. In the
monthly period through November 29, his Paulson Advantage fund
lost 7.46 percent. This brings the full-year decline to 34.74
percent. And this is not even his leveraged fund, whose losses
have far exceeded the unleveraged declines. For example,
through October when Advantage was down 29 percent, Advantage
Plus was off 44 percent. (The month-to-date returns in this
particular database span October 25November 29.)
The Paulson International fund lost 2.44 percent for the
monthly period and is now down 12.36 percent for the year. Even
the gold fund lost money last month, dropping 1.82 percent.
This brought the Paulson Gold Fund Ltd Class A's full-year gain
to below 1 percent through November 29.
The struggles came despite Paulsons stated move to
reduce risk in his funds. In mid-November, Paulson reportedly
told investors he had cut his net exposure in its main hedge
funds to 30 percent, down from 60 percent during the summer. He
was said to be waiting until there was more confidence
that Europe would gets its debt problems under control.
However, November was a treacherous month for traders
overall. Although the S&P 500 lost just 0.5 percent
for the month and the Nasdaq Composite dropped 2.4 percent, the
S&P 500 moved 1 percent on 12 of the 21 trading days--six
days up and six down, according to Howard Silverblatt
of Standard & Poors.
At the beginning of the fourth quarter, SPDR Gold Trust was
by far Paulson's largest holding. This was followed by the ADRs
of gold producer Anglogold Ashanti, Anadarko Petroleum, Capital
One Financial and Transocean.
He cut his position in Citigroup and totally unloaded stakes
in financial giants JPMorgan Chase, State Street and Northern