Merger Funds

Paulson Partners and Paulson Partners Enhanced, the firm’s merger-arbitrage strategy with $5 billion in assets, increased 0.5 percent and 1 percent last month, respectively, and 3.8 percent and 7.2 percent in 2013.

Paulson’s Advantage Plus and Advantage funds, which seek to profit from corporate events such as takeovers and bankruptcies, fell 4.7 percent and 3.4 percent, respectively, in February, bringing this year’s losses to 3.5 percent and 2.5 percent.

The Advantage funds lost 19 percent and 14 percent, respectively, in 2012 after Paulson made bets on a worsening European sovereign-debt crisis and that gold stocks would rise. In the second half of last year, Paulson, 57, gradually eliminated the Europe-related wagers, he said in the year-end letter.

Paulson, who became a billionaire in 2007 by betting against subprime mortgages before the housing collapse, posted record losses in 2011 when he made wrong-way bets on a U.S. economic recovery.

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