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Alternative Market Briefing

Paulson hedge funds make a killing in February, China Mantou Fund up estimated 7.1% in February, Balestra up 2% on `bloody Tuesday`, Convexity disappoints with zero returns, FoF KGR cuts China exposure prior to correction

Monday, March 05, 2007

Opalesque Exclusive: Paulson hedge funds make a killing in February According to estimated performance numbers, the Paulson family of hedge funds made a killing in the turbulent month of February 2007. Industry sources said Paulson was short the subprime mortgage index (ABX).

The merger arbitrage funds Paulson International and Paulson Partners were up 12.89% and 13.22% (all figures net, Year 2007: 18.16% and 18.87%. Both funds have a 2x leveraged version returning 24.47% and 24.62% (Y 2007: 35.51% and 35.77%).

Event arbitrage funds Paulson Advantage Ltd. and Paulson Advantage LP were up 13.55% and 15.11% (Y 2007: 17.47% and 20.80. The 1.5x leveraged versions Advantage Plus Ltd. and Advantage Plus LP are up 23.43% and 23.91% (Y 2007: 30.09% and 34.12%).

Credit funds Paulson Credit Opportunities Ltd. and Credit Opportunities LP are up 66.87% and 66.92% (Y 2007 82.81% and 82.39%). Paulson Credit Opportunities II Ltd. and Credit Opportunities II LP are up 34.43% and 34.45% (Y 2007 44.11% and 44.20%).

Opalesque Exclusive: China Mantou Fund up estimated 7.1% in February The China Mantou Fund, managed by Pacific Sun Investment Management (HK) Ltd., says despite volatile markets at the end of February its portfolio finished up approximately 7.1% last month. Including an upward revision for January the Fund is now up around 11.4% year to date following last year’s near 54% gain.

According to the firm, key to the good numbers in Februa......................

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