Billionaire John Paulson’s hedge funds gained in February because of successful wagers in health care and energy.
The $18 billion Paulson & Co.’s merger strategy, which comprises about half of the firm’s assets, advanced for the second straight month. The Paulson Partners fund rose 3 percent and a leveraged version gained 6.5 percent, according to a person familiar with the matter, who asked not to be identified because the results are private. The increases pushed returns to 4.2 percent and 9.3 percent, respectively, for the year.
Paulson is rebounding after most of his funds lost money in 2014. His funds were hurt in part by energy and health-care positions, some of which boosted performance last month.
The Paulson Special Situations Fund, formerly called the Paulson Recovery Fund, rose 7.3 percent in February as its investments in Greek financials and utilities rebounded, according to the person. The advance cut losses this year to 2.6 percent.
The firm’s credit fund climbed 2.1 percent last month on positions in energy, post-reorganization equity, and holdings of defaulted securities, the person said, bringing gains for the year to 3 percent. The Advantage fund, which makes bets around corporate events, gained 1.5 percent.
Armel Leslie, a spokesman for the New York-based firm with Peppercomm, declined to comment on the returns.
© Copyright 2024 Bloomberg News. All rights reserved.