Fri, Apr 29, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Performance - Blackstone profits plunge 77% as performance fees dive, Hedge fund stars' fortunes hostage to market swings, Hedge fund manager goes from billionaire to millionaire in profits plunge, Hedge funds biggest losers in SunEdison's 'magic money machine'[more]

    Blackstone profits plunge 77% as performance fees dive From FT.com: Blackstone, the world’s biggest manager of alternative investments from private equity to real estate, suffered from sharply lower performance fees amid turbulent markets in the first three months of the year, even as it

  3. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  4. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  5. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the