The following is an excerpt from: Katya Wachtel | August 23, 2012 | Yahoo.com |
NEW YORK (Reuters) – The hits keep coming for hedge fund manager John Paulson, with Citi Private Bank deciding it will withdraw up to $500 million from Paulson & Co’s flagship Advantage funds, according to a person familiar with the decision.
Citi mentioned its decision to pull capital from Paulson’s Advantage funds, which have recorded double-digit losses so far this year, on a Thursday morning conference call with its private bank adviser, that person said, adding he was not on the call.
The Advantage Plus fund sank 18 percent through the end of last month, and the Advantage fund declined 13 percent over the same period.
Hedge funds gained 2.88 percent on average through July 31, according to hedge fund tracking firm HFR, while the broader stock market rose 7.41 percent over the same period.
Armel Leslie, a spokesman for Paulson & Co, declined to comment on the withdrawal. Citi did not return requests for comment.
The redemption was first reported by Bloomberg.
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