For the second month in a row, John A. Paulson suffered acute losses at his flagship funds, The Financial Times reported.
Paulson & Co, with $33 billion in assets, booked losses at its Advantage fund, its Advantage Plus fund and its $3 billion Recovery fund, according to press reports. Almost two-thirds of the firm’s assets are in his Advantage funds, which invest in corporate events like bankruptcies and mergers.
Mr. Paulson’s $9 billion Advantage fund lost 4.4 percent in June, leaving it down 5.8 percent for the year so far, The Financial Times reported. That comes on top of a 6.9 percent drop in May.
Paulson & Company’s Advantage Plus fund, meanwhile, fell 6.9 percent in June, bringing it to an 8.8 percent loss in the first half of the year, according to Bloomberg News.
Mr. Paulson’s Recovery fund, which has large positions in United States banks like Citigroup and Bank of America, booked a 12.39 percent loss in June, The Financial Times reported, citing an investor in the fund. The Recovery fund dropped 9 percent in May, but is still up for the year on a strong first-quarter performance, the newspaper said.
However, as Bloomberg News noted, Mr. Paulson isn’t the only big-name hedge fund investor to be hit by the volatile market. Reeling from the worst second-quarter performance in a decade, many of the hedge fund industry’s biggest names are scaling back trading as they struggle to figure out where markets are headed.