Sun, Nov 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

J. Paulson reassures investors, denies new CDO probe

Thursday, April 22, 2010
Opalesque Industry Update – Hedge fund manager John Paulson, chairman and founder of Paulson & Co., is taking a proactive stance with his investors in the light of the American Securities and Exchange Commission’s (SEC) probe into Goldman Sachs, as he held a second conference call in a span of three days this week with his investors.

According to CNBC, the second conference call on Wednesday involved a different group of investors and mainly touched on his letter to clients sent on Tuesday that described his dealings in the mortgage markets as “transparent and open.”

Paulson’s first conference call with clients was held on Monday.

No new CDO probe
In Wednesday’s conference call, Paulson assured his investors that the U.S. government had not launched a new collateralized debt obligations (CDOs) probe into his company. “No. Nothing that’ we’re aware of,” Paulson reportedly told his clients when asked if he received any notice from the SEC.

A day earlier, Paulson sent a letter addressed to his clients, including Australian investors, and told them that his company had always been transparent and open in its dealings with the North American housing market.

Paulson also tried to distance himself from the current controversy facing global investment bank Goldman Sachs. The Abacus security marketed by the bank is being blamed as having contributed to the sub-prime housing crisis which eventually led to the world financial meltdown in 2007 to early 2009.

Paulson is still ‘king’
Paulson found an ally with Anthony Scramucci, founder and CEO of New York-based asset management firm Skybridge Capital, who dismissed speculations that Paulson “has lost his crown.”

“Although some investors are fearful, I think any chatter about a run on Paulson's fund is very exaggerated,” Scaramucci told CNBC.

Earlier, Reuters reported that some of Paulson’s clients were considering withdrawing their money from the billionaire’s hedge fund in the face of his involvement with Goldman Sachs. The investigation into Goldman Sachs also forced Paulson’s Propel Multi-Strategy Fund in Canada to delay its planned initial public offering (IPO).

Paolo Pellegrini, a former aide of Paulson, told investigators that Paulson had a limited role in selecting the securities for the failed $1bn Abacus securities that Goldman marketed. He added that the Abacus securities were the only transaction Paulson arranged with Goldman Sachs.
-Precy Dumlao

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  5. Hedge fund Oceanwood raises $2bn, to close to new investors[more]

    From Reuters.com: Europe-focused hedge fund Oceanwood Capital Management is closing its fund to new investors after its assets under management hit $2 billion (1 billion pounds) recently, a source with direct knowledge of the matter said. Oceanwood, a multi-strategy hedge fund spinout from Tudor Gro