The final tally on John Paulson’s gross redemptions was less than 8 percent of his $30 billion under management. This works out to slightly above $2 billion, according to several sources.
This is much less than some pundits had predicted.
The deadline for investors to submit redemption requests was Monday.
We had reported Paulson received $1.5 billion in redemption requests as of Friday.
Paulson was also said to have received new capital, but it is not known how much. However, sources say the new money did not come close to offsetting the outflows.
As previously reported, Paulson is also allowing existing investors to put additional money into any of the firm’s funds, and won’t charge a performance fee until that particular fund hits its high water mark.
Paulson has made a huge bet on gold as well as on securities that benefit from a strong, recovering economy, but many of his funds have lost between 20 percent and 47 percent this year.
This could mean he won’t earn performance fees for several years.
In addition, Martin Feldstein has joined Paulson’s Economic Advisory Board. Feldstein is currently George F. Baker Professor of Economics at Harvard University and previously served as chairman of the Council of Economic Advisers under President Ronald Reagan. He also served as Reagan’s chief economic advisor.
Former Federal Reserve chairman Alan Greenspan also serves on Paulson’s Advisory Board.
