John Paulson's Hedge Funds Slammed in August, Flagship Loses 4.2%

Sep 10 2015 | 9:00pm ET

John Paulson’s hedge funds faced tough sledding during August as volatility on global securities markets soared.

The company’s flagship Paulson Partners fund fell 4.2% in August, according to Reuters. The loss brings the Paulson Partners portfolio to a 2015 YTD gain of 6.52%. 

Paulson’s Advantage Fund, which follows an event-driven strategy, fell 4.9% during the month and is now down 3.6% for the year. 

The firm’s Special Situations Fund fell the most, losing 8.35%, bringing its year-to-date performance to an 11.6 % loss. Its credit fund fell 2.3% last month and is now down 2.6% for the year.

The New York-based company manages more than $19 billion in assets, half of which is are in Paulson Partners. The August losses were in keeping with general market moves during the month and in line with the results posted by other large hedge funds for the period. 

Paulson is known for patiently sticking with positions even if temporarily go out of favor. He famously shorted the U.S. subprime market in 2007 and made a prescient move into gold a few years later. One of Paulson’s more recent contrarian plays has been on a recovery in Puerto Rican tourism, buying hotels and other properties on a bet the island can navigate its way out of a crushing debt crisis. 

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