Sat, Jun 25, 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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider