According to people who had knowledge with the matter, billionaire hedge-fund manager John Paulson's Advantage fund posted gains in the main strategies of his firm last month. This was in part from the fund's investment in Extended Stay America Inc, a US hotel company, added the sources.
The sources, who refused to be named as the information was not for public knowledge, said Advantage fund jumped 13% in November and 30% this year. Advantage, which manages USD20 billion in assets and based in New York, was said to have garnered increases last month in its credit, merger and Recovery funds, said the sources.
Bloomberg noted that Paulson benefited from the stock rally, especially with Extended Stay. US' largest owner of mid-price long-stay hotels increased 26% through the end of November since it made its trading debut on November 13.
Paulson & Co seemed to have rebounded from losses it incurred in gold and two years of wrong calls on the US economy, Bloomberg said in its report. The company was known as the firm who had wrongly bet USD15 billion in against subprime mortgages in 2007. Over 75% of the firm's capital had reached fund-level high-water marks, said Paulson & Co to its investors back in August.
Perhaps Paulson's best move was its Recovery Fund. The fund, which sought to benefit from the US economy's growth, saw a 6.5% increase in November, which brought in 55% in returns since the beginning of the year, said the sources.
The people also added that the Paulson Credit Opportunities Fund saw a 3.2% increase last month, bringing the firm's 2013 returns to 20%.
Advantage Plus fund, also of Paulson's increased 6% in November and 28% overall for this year, according to the same sources. Advantage Plus uses leverage and intends to profit from corporate events like takeovers and bankruptcies.
When asked for comment about the report, spokesman Armel Leslie for Paulson & Co. with WalekPeppercomm refused to provide one.
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