Billionaire hedge-fund manager John Paulson continued to post declines for two of his largest funds in November.
Paulson & Co.’s Advantage Fund was down 3% in November, bringing year-to-date losses to 32%, a person familiar with the situation said Tuesday.
The Advantage Plus Fund, which employs the same strategy as the Advantage Fund but with leverage, dropped 3.6% in November and 46% for the year through November, the person said.
The two Paulson funds underperformed the S&P 500 index, which was flat that month.
Paulson, who manages $28 billion in assets, recently apologized to investors for being “overly optimistic.” His investment thesis that financial stocks would benefit from an orderly resolution of the European sovereign-debt crisis didn’t work out as concerns over sovereign-debt exposure and tightened regulatory monitoring continues.
But his bet on gold reaped rewards as the Gold Fund rose 1.3% in November, and 11% for the year through November.
Paulson won a fame making billions of dollars betting against the U.S. housing market.
Source: The Wall Street Journal
