Friday February 27, 2015 Search
Weather | Athens
11o C
6o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek banks give Paulson's Recovery Funds a boost in Q1

By Svea Herbst-Bayliss

Gains in Greek banks' shares gave billionaire investor John Paulson's $3.2 billion Recovery Funds a lift during the first quarter, and future returns are expected to keep climbing as the housing and real estate markets continue to recover.

The Recovery Fund LP gained 5.58 percent in the first three months of 2014, thanks in part to strong returns on Greece's Alpha Bank and Piraeus Bank, Paulson told investors in his latest funds update, which was seen by Reuters.

The average hedge fund gained only 1.07 percent during the first quarter. Hedge funds often take a few weeks to assemble their quarterly reports. Paulson sent his out to investors in the last days.

Paulson, whose investments have been widely followed ever since the firm earned billions by betting against the overheated mortgage market, bought into the Greek banks a year ago when they needed a capital injection. He said that he expects "there to be new opportunities" in Europe as the region emerges from its crisis.

Paulson & Co manages $22 billion, making it one of the hedge fund industry's biggest firms, and thanks to its strong returns last year, Paulson himself earned $2.3 billion last year, according to Institutional Investor's annual ranking.

The Recovery Funds were launched during the financial crisis with an eye to investing in sectors like banking, hotels and real estate that would grow as the economy recovers.

Paulson also said that the funds invested in two private placements of auto lender Ally Financial, which had been General Motors' financing arm, and that he expects earnings to increase "substantially" over the next years. Earlier this month, the company reported a smaller first-quarter profit as it exited various businesses.

Insurer Genworth Financial also helped boost returns as its stock price has gained 131 percent since Paulson bought it early last year. "Medium term, if the company chooses to spin-off its mortgage insurance and other life insurance businesses into two separate companies, there could be substantial additional upside," the manager wrote.

In the firm's Advantage Funds, which rose to prominence in 2007 when the Advantage Plus LP surged 163 percent, MGM Resorts helped. The company's stock gained 102 percent last year and rose 10 percent in the first quarter.

The Advantage Funds had a rocky 2011 and 2012 but roared back last year, when Advantage Plus returned 32 percent, keeping pace with the S&P 500 stock index and handily beating the average hedge fund's 9 percent return.

Despite a 7.4 percent loss in March, the fund gained 4.31 percent during the first quarter.

Paulson, known for his big investments in gold even when the price was tumbling, said stronger gold prices during the first quarter helped the gold stocks he owns, with the Market Vectors Gold Miners Index climbing 11.7 percent. [Reuters]

ekathimerini.com , Thursday May 8, 2014 (11:59)  
Minister says he hopes that ENFIA ends
Postponing an IMF tranche ‘means default’
Stournaras says deal must be completed
Greek bank deposits plunge to lowest point since 2005
Gov’t raises concern over payment to IMF in March
The Euro Working Group discussed Greece’s imminent funding problems on Thursday amid mounting concern about how the country will meet its obligations next months. Earlier in the day, Ministe...
More than 300 migrants released
More immigrants and asylum seekers were released from detention centers across Greece on Thursday as the government seeks to make good on a campaign pledge to close down such facilities, cit...
Inside News
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
BASKETBALL
Greens lose at Maccabi but preserve head-to-head advantage
Panathinaikos suffered its third loss in eight games at the second stage of the Euroleague going down 73-70 at Maccabi Tel Aviv on Thursday, but has preserved its better head-to-head record ...
Inside Sports
COMMENTARY
A breath of opportunity
We are still living in the Greece we know: The government is struggling to explain its retreat in the face of our creditors, the opposition (including dissidents in SYRIZA) smells blood, we ...
ANALYSIS
Having it both ways: Greece´s doublespeak to Brussels and voters
Gingerly treading between its anti-austerity promises to voters and its pledges to skeptical international creditors, Greece's new radical government is resorting to doublespeak to keep ever...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ten-man Olympiakos couldn´t overcome Dnipro
2. Greens lose at Maccabi but preserve head-to-head advantage
3. Minister says he hopes that ENFIA ends
4. Postponing an IMF tranche ‘means default’
5. Stournaras says deal must be completed
6. Panathinaikos deducted the three points earned at the derby
more news
Today
This Week
1. The unlikely winners of Greece's surrender on euro
2. SYRIZA feeling the pain
3. Turkish jets violate Greek air space
4. Schaeuble tells MPs Varoufakis 'strains' EU solidarity
5. Merkel faces stepped-up dissent on Greek bailout among lawmakers
6. Greek bank deposits return after bailout extension
Today
This Week
1. Greece prepares extension request for eurozone approval
2. Time for Alexis Tsipras to keep his nerve
3. Stubborn but not almighty
4. Greek bailout deal faces review by euro officials next week
5. Greece says eurozone deal won time as cash bled from banks
6. The ignorance of the West about the culture of Islam
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.