Billionaire hedge-fund manager John Paulson posted gains in his firm’s main strategies in November, in part from an investment in Extended Stay America Inc. (STAY:US), according to two people familiar with the matter.
Paulson’s event-driven Advantage fund surged 13 percent in November and 30 percent this year, said the people, who asked not to be identified because the information is private. The firm, based in New York with $20 billion in assets, posted increases last month in its credit, merger and Recovery funds, the people said.
Paulson, 57, benefited as stocks rallied and Extended Stay, the largest owner of mid-price long-stay hotels in the U.S., jumped 26 percent (STAY:US) through the end of the month since its trading debut on Nov. 13. Paulson & Co., best known for making $15 billion for investors in 2007 by betting against subprime mortgages, is rebounding from losses tied to gold and two years of wrong-way calls on the economy. More than 75 percent of the firm’s capital has surpassed fund-level high-water marks, Paulson & Co. told investors in August.
Paulson Partners Enhanced Fund, the leveraged version of the firm’s merger-arbitrage strategy, gained 2.3 percent in November and 28 percent this year, the people said. Paulson Partners increased 1.2 percent last month and 16 percent year-to-date.
The Recovery Fund, which seeks to benefit from growth in the economy, is the firm’s best-performing strategy in 2013. The fund rose 6.5 percent in November, bringing returns since the start of the year to 55 percent, according to the people.
The Paulson Credit Opportunities Fund increased 3.2 percent last month, bringing returns for 2013 to 20 percent, the people said.
Paulson’s Advantage Plus fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage, rose 6 percent in November and 28 percent this year, according to the people.
Armel Leslie, a spokesman for Paulson & Co. with WalekPeppercomm, declined to comment on the returns, which are for the firm’s onshore funds.
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