Billionaire hedge-fund manager Jan Paulson told shoppers he sees a fifty % probability the euro can unravel, said an investor who listened to the comments.
An event inflicting a breakup could happen in 3 months to 2 years, Paulson said on a conference decision. These days reviewing second-quarter performance, in line with the investor, who asked to not be named as a result of the decision was personal. Paulson, who runs Paulson & Co, said he expects sovereign yield spreads to widen.
Paulson, who posted a sixteen % loss from one of his largest funds within the 1st 1/2 the year, told shoppers in February that Greece could default by the tip of this March, and said the euro currency is “structurally flawed and can possible eventually unravel.”
Armel Leslie, a spokesman for the $22 billion firm in the big apple, declined to comment.
Paulson was seeking to recoup losses once his Advantage and Fund fell a record fifty one % last year following failed bets on a U.S. economic recovery.
Paulson said on today’s decision that his firm has reduced risk at a number of its funds, in line with the consumer. So-called web exposure in its Advantage funds, that ask for to exploit company events like takeovers and bankruptcies, is currently eleven percent; at the Credit funds it’s minus nine percent; and at the Recovery funds, that bet on assets Paulson believes can have the benefit of a long-term economic advance, it’s thirty one %, the investor said.
The Advantage funds had web exposure of thirty two % as of the tip of January, the Credit funds were at twenty seven % and therefore the Recovery funds were at fifty five %, in line with an annual letter sent to shoppers in February.
Net exposure is calculated by subtracting the share of a hedge fund’s short positions, or bets on falling securities, from its long holdings, or wagers on rising stocks and bonds.
Paulson told shoppers that employee capital represents sixty % of the firm’s funds, in line with the investor. It had been fifty three % earlier this year, in line with the February letter.
stockgainersandlosers.wordpress.com 