Tag Archives: Daniel Loeb

Paulson Said to Inform Clients He Won’t Add More to Gold

According to Bloomberg,

Billionaire John Paulson, the best-known gold bull since he started wagering on bullion more than three years ago, is backing away from his bet.

Paulson told clients at his firm’s annual meeting Nov. 20 that he personally wouldn’t invest more money in his gold fund because it’s not clear when inflation will accelerate, according to a person familiar with the matter. The hedge-fund manager, who has been betting that bullion would rally as a hedge against inflation and as recently as last year told clients that gold was his best long-term bet, has lost 63 percent year-to-date in the PFR Gold Fund, said the person, who was briefed on the returns and asked not to be identified because the information is private.

Paulson, 57, started his foray into gold in early 2009, betting that bullion would rise as governments printed money to revive their economies following the 2008 financial crisis. Gold-related securities helped drive losses for the firm in 2012 as mining company stocks fell. Paulson & Co.’s main strategies have gained this year on bets in mergers, defaulted securities, convertible bonds and telecommunications, energy, insurance and asset-management companies.

The fund, which has shrunk to $370 million — with most of that John Paulson’s own money — from $1 billion at the end of 2012, fell 1.2 percent in October, the person said. The hedge-fund firm will maintain the fund’s positions in gold stocks and let options related to bullion expire, Paulson said at the meeting in Paulson & Co.’s New York office, according to the person.

Hedge-fund Manager John Paulson (Bloomberg)

Hedge-fund Manager John Paulson (Bloomberg)

Armel Leslie, a spokesman for $19 billion Paulson & Co. with WalekPeppercomm, declined to comment on the meeting and fund returns.

Bullion’s Slump

Gold is heading for its first annual drop in 13 years as some investors lost faith in the metal as a store of value, fueled by concern that expected reductions in $85 billion of monthly bond buying by the U.S. Federal Reserve will ease the risk of accelerating inflation. Billionaires George Soros and Daniel Loeb sold their entire positions in the SPDR Gold Trust exchange-traded fund in the second quarter, according to regulatory filings. Inflation expectations as measured by the break-even rate for five-year Treasury Inflation Protected Securities fell 12 percent this year.

Bullion has slumped 26 percent this year to $1,246.30 an ounce at 3:21 p.m. in London and reached $1,236.88 yesterday, the lowest since July 9.

Hedge funds and other money managers have cut their net-long positions in gold to 55,456 futures and options as of Nov. 12, according to the latest data from the U.S. Commodity Futures Trading Commission. The holdings are down 48 percent this year.

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George Clooney zaps hedge fund billionaire as ‘carpetbagger’

George Clooney zaps hedge fund billionaire as ‘carpetbagger’

Actor George Clooney attacked one of Wall Street’s most famous hedge fund managers, billionaire Daniel Loeb, accusing him of criticizing Hollywood studios for their business practices, while failing to understand the movie industry himself.

“(Loeb) calls himself an activist investor, and I would call him a carpetbagger, and one who is trying to spread a climate of fear that pushes studios to want to make only tent poles (big blockbuster movies),” Clooney said in an interview with the Hollywood industry web site, Deadline.com.

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Hedge funds hit by June sell-off even as many still boast 2013 gains

Hedge funds hit by June sell-off even as many still boast 2013 gains

(Reuters) – Sharp market sell-offs in June tripped up many veterans in the $2.25 trillion hedge fund industry with big name managers including Daniel Loeb, Barry Rosenstein, David Einhorn and Leon Cooperman nursing losses for the month.

Many funds were caught off guard by the deep market sell-off triggered by Fed Chairman Ben Bernanke’s comments that the central bank may consider tapering its easy money policies, including billions a month in bond purchases, by year-end.

The losses took a bite out of solid year-to-date gains among many hedge funds that had been fueled by a strong stock market rally at the start of the year coupled with bets that Japan’s economy will finally recover.

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Hedge Funds Fail to Wow in First Half

Paul Tudor Jones. David Einhorns. Daniel Loeb. These billionaire star investors recently have reported miserable growth on the funds that they are managing. Now the key questions that is eagerly awaiting to be answered is: “Why should I give you so abundant a fee for so poorly a return?” Svea Herbst-Bayliss from the Reuters have reported this issue today.

Hedge funds have little to brag about halfway through 2012, with some of the industry’s biggest names reporting only small gains and trailing the benchmark U.S. stock index by a wide margin.

Paul Tudor Jones’ flagship fund is up 1.59 percent through the third week in June and David Einhorn’s biggest portfolio is up 3.7 percent in the first half, while Daniel Loeb told investors that his largest fund rose 3.9 percent during the first six months of 2012, investors in the funds said.

Compared with a year ago when many hedge funds were losing money, these returns might be something to cheer, especially since they beat the benchmark HFRX Global Index‘s 1.22 percent gain.

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