Paulson & Co., the hedge fund headed by billionaire investor John Paulson is launching a new long/short fund initially focused on betting on or against equities in the healthcare, pharmaceutical, technology and consumer sectors.
In a letter to investors, Mr. Paulson said his firm will support the new fund with $500 million capital. Paulson & Co. has more than $19 billion in assets under management, and recently generated huge profits from the sectors mentioned above.
Guy Levy, a managing director at Paulson & Co., has been appointed to become the portfolio manager of the new fund.
“Guy’s talent and expertise in healthcare, pharmaceutical and related sector investing have added significantly to our performance over the past five years, giving me confidence in his abilities to lead this new fund,” said Mr. Paulson.
John Paulson announces management changes
John Paulson added that Sheru Chowdhry, a managing director and Ty Wallach, an investment partner at his firm, will serve as co-portfolio managers of the Paulson Credit Opportunites Fund. He is also sharing his trading authority with Chowdry.
“This is a reflection of Sheru’s deep credit expertise, experience and performance over the past 12 years and Ty’s success leading numerous successful credit investments,” explained Paulson.
According to Mr. Paulson, the changes in the hedge fund’s management allow him to “continue to focus on event investing, provide opportunity for growth internally and maximize the potential to grow our capital at above-average rates of return over the long term.”
Paulson’s funds are generating good returns this year
Last year, many of John Paulson’s funds suffered losses, but generating good returns this year. Mr. Paulson’s Partners fund gained 9% net of fees and the Enhance fund delivered 19% returns, and the Credit fund climbed 4% through May, according to CNBC based on information from people familiar with the performance of the hedge fund.
John Paulson recently gained from his investments in Allergan, Salix Pharmaceuticals and Mallinckrodt. Based on his 13F filing in the first quarter, his top stockholdings include Actavis, Mallinckrodt, Mylan, Salix Pharmaceuticals and Shire.
Earlier this month, Mr. Paulson donated $400 million to Harvard University, the largest donation in the history of the university. His donation would fund the endowment for the School of Engineering and Applied Sciences.