Currencies

Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

Continue Reading

Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

Continue Reading

Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

Continue Reading

Currencies, Equities

Scary movie sequel beckons for eurozone markets

Just as horror movies can spook fright nerds more than they expect, so political risk is sparking heightened levels of anxiety among seasoned investors. Investors caught out by Brexit and Donald Trump are making better preparations for political risk in Europe, plotting a route to the exit door if the unfolding story of French, German […]

Continue Reading

Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

Continue Reading

Categorized | Financial

Two partners exit Paulson & Co’s London office


Posted on November 23, 2016

Two partners at Paulson & Co’s London office have left this month as the shrinking New York-based hedge fund continues to downsize.

Assets under management at the merger arbitrage fund, run by billionaire John Paulson, have fallen to $12bn from a peak of about $36bn five years ago and the reduction in headcount is a result of that, according to a person close to the company.

Harry St. John Cooper, a partner and executive in the London office, is the most high-profile departure, along with gold strategist and former partner John Reade, who once ran the PFR Gold Fund along with Mr Paulson and Victor Flores. Trader Peter Dunne and Massimo Stabilini also left the hedge fund.

Part of the decline in assets at Paulson & Co is down to redemptions, while the rest is because of performance as its losing bets on healthcare companies including Allergan and Valeant contributed to the drop. It is also a large shareholder in Shire and Teva.

Much of the money that is left at the company is that of Mr Paulson, who has pledged part of his own fortune to keep the funds running. The majority of the London office has now departed, including more junior staff, according to another person with knowledge of the office.

There is a chance that Paulson & Co’s fortunes may now be reversing as healthcare stocks rallied following Donald Trump’s US election victory. Mr Paulson is a significant donor to the Republican party and supported Mr Trump’s candidacy.

Mr Paulson, one of the titans of the US hedge fund industry, made billions betting against subprime mortgages before the financial crisis. Paulson & Co’s Advantage Plus fund returned 158.5 per cent in 2007, 37.6 per cent in 2008, 21.5 per cent in 2009 and 17 per cent in 2010.

Paulson & Co’s London office is still being led by Orkun Kilic, a partner and the company’s head of European Investments, and remains part of the global event-arbitrage strategy.

Paulson & Co said: “Paulson Europe LLP remains part of our global event arbitrage business and the core team is in place to serve our clients.”