After spending a couple of years in worst performing hedge fund lists, John Paulson’s event-driven funds have gained some ground this year. Reuters’ Svea Herbst-Bayliss reports that Paulson’s flagship Advantage funds were up in the last month. Paulson Advantge ($1.8 billion) took a gain of 1.9 percent, whereas Advantage Plus ($2.6 billion) was at 2.8 percent in the last month. Each fund is now up 10 percent and 14.4 percent, respectively. Paulson’s decent returns come at a time when most event-driven funds, such as York Capital and Third Point, had a difficult time navigating the market.
Paulson up in all of his funds
While Paulson’s other funds were not up in August, they have also returned well through the year overall. Paulson Recovery Fund ($1.5 billion) has gained 32 percent this year after losing 1 percent in August. The fund also added a 10 percent gain in July alone after Paulson’s big bets on housing recovery started making money. The fund was down 28 percent in the last year.
Paulson Credit Opportunities ($5.3 billion) is up 13.6 percent, whereas Paulson Enhanced ($2.2 billion) is up 21.8 percent. Gains for Paulson’s hedge funds came through investments in gold, energy and healthcare stocks. Despite of losses in his gold holdings through the greater part of this year, Paulson still has positions in the precious metal.
Ray Dalio’s All Weather loses in August
On the other end, Ray Dalio’s luck has taken a turn for the worst this year. The All Weather Fund has lost 1.4 percent in August. All Weather’s $70 billion portfolio has wiped out all its gains in the last three months, leaving it down 7 percent YTD. Bridgewater’s flagship fund managed to post a 2.5 percent gain in July. According to a report from Reuters’ Jennifer Ablan, the fund has mainly lost in Treasury inflation protected securities, or TIPS, one of its main investments as bond yields have gone in the the last few months. Bridgewater was the leader when it came to investing in inflation protected bonds.
The All Weather Fund was up 14.7 percent in the last year.