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Paulson's Biggest Hedge Fund Said to Advance 2.6 Percent in October

Wednesday, 03 Nov 2010 01:21 PM

Billionaire hedge fund manager John Paulson posted gains in October that brought his flagship Advantage Plus fund into the black for the year, but returns still trail the broader market.

Paulson & Co's Advantage Plus gained 2.55 percent last month, leaving it up 2.54 percent for the year, according to two sources who saw the numbers, which are not released publicly.

The fund's so-called gold share class, where roughly one-third of its assets are invested, performed significantly better, posting a 4.76 percent increase in October, leaving it up 19 percent for the year.

With $32 billion in assets, Paulson & Co. ranks as America's third-biggest hedge fund and its monthly performance numbers are closely watched for trends in the $1.7 trillion industry.

Earlier this year many hedge fund managers were in the red, hurt by volatile markets and Europe's growing credit crisis.

Paulson had a successful September and October. Still, his flagship fund's dollar share class still trails the average stock mutual fund's 8.72 percent return for the year.

Paulson Partners Enhanced fund, the firm's weighted merger arbitrage portfolio, gained 7.36 last month in the dollar share class, leaving it up 16 percent for the year.

The gold share class for that fund rose 8 percent, leaving it up 32 percent for the year.

Paulson's newest offering, a dedicated gold fund, has fared especially well as the yellow metal surged to more than $1,300 an ounce. In October, the gold fund climbed 3.6 percent, leaving it up 26 percent for the year.

Hedge funds, unlike mutual funds, are not required to disclose their performance, but many report data voluntarily to tracking firms, which later announce monthly performance numbers.

© 2015 Thomson/Reuters. All rights reserved.

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