John Paulson had plenty to celebrate this weekend. The bulk of Paulson’s funds showed positive returns in the first quarter, according to an investor letter sent out on Thursday. Paulson & Co.’s Advantage Fund gained 6 percent in March and is up 3.4 percent for the first quarter. The Advantage Plus fund, which lost more than half its value in 2011, rose 4.6 percent in March; it’s up 8.3 percent year-to-date as of March 31. Paulson’s gold fund is down 28 percent for the quarter.
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Hedge funds rose 3.8 percent in the first quarter of 2013, with nearly 80 percent of the industry in positive territory year-to-date, according to eVestment. Equities exposure was the strongest strategy. Credit and volatility strategies were positive but still below their 2012 levels. while FX and commodity funds were a drag on the industry’s returns. The best returns in the first quarter, as well as in March, were directional equity strategies, particularly funds targeting Japan and the country’s equity market advances due to loose monetary policie. Emerging markets had a difficult month in March and have fallen after their strong start to 2013. India focused funds have given back over half of 2012’s gains, eVestment reported.
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William Ackman, founder of Pershing Square Capital Management and a staunch defender of Ron Johnson, whom he handpicked as JC Penney’s CEO, changed his stance a bit at a Reuter’s forum Friday and agreed with critics, “if [Penney’s] is failing under his watch he deserves criticism for that.” http://www.reuters.com/article/2013/04/05/us-hedgefunds-ackman-jcpenney-idUSBRE9340MS20130405?irpc=932Ackman also lamented his very public jousting with Carl Icahn over Herbalife and what it has done to the hedge fund industry, which he said used to be more cooperative than competitive. “This was the first case where there was a lot of sniping going on,” he said.
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Michael Terry, the head of global capital introductions at Bank of America, is leaving his position to be a client adviser at Bridgewater Associates, according to the Wall Street Journal, citing people familiar with the situation. Terry helped launch the asset management advisory firm Oakpoint Advisors and raised capital for FrontPoint Partners, a hedge fund firm that closed under the weight of an insider trading scandal. FrontPoint and its executives weren’t accused of wrongdoing. Terry also has an asset required for joining the hedge fund world: a sense of humor. According to Terry’s LinkedIn profile, he pursued a career as a standup comic from 2008 to 2011.
Separately earlier this week Absolute Return reported that Ajay Nagpal, the head of Barclays prime brokerage, is leaving the bank to join Israel Englander’s Millennium Partners.
