| BOSTON, Sept 13
BOSTON, Sept 13 Billionaire investor John
Paulson's biggest funds are boasting double-digit returns for
the year, and his Advantage Funds made money in August when many
hedge funds were in the red.
The Advantage Fund rose 1.9 percent in August and is now up
10 percent for the year, while the Advantage Plus Fund rose 2.8
percent and is up 14.4 percent, according to two people familiar
with the numbers but who are not permitted to speak about them
Both portfolios beat the average return of hedge funds,
which slipped 0.73 percent in August, as well as the Standard &
Poor's Index, which fell 3.3 percent. The gains were welcome
news for the fund family after two years of heavy losses shrunk
the once enormous size of the Advantage Funds.
Gains in gold mining stocks, energy and healthcare helped
fuel the Advantage Funds' returns in August.
Paulson, whose moves have been closely watched ever since he
earned billions by betting against subprime mortgages, also
earned bragging rights for his other funds. The Paulson Recovery
Fund is up 32.3 percent for the year after slipping 1 percent in
August, while the Paulson Credit Fund is up 13.6 percent for the
year and the Enhanced Fund is up 21.8 percent.
The average hedge fund is up nearly 4 percent since January,
according to Hedge Fund Research.
Even Paulson's Gold fund, which made dramatic headlines with
heavy losses earlier in the year, gained 11 percent in August,
when the price of gold rose 6 percent, one of the people who had
seen the numbers said.
The Gold fund never attracted many outsiders and is now
largely made up of Paulson's personal money.
Paulson, known for his patient investing style, has held
firm this year to his thesis that gold will come back,
and gold miners will flourish, especially as growth picks up
around the world.
This week Paulson's investment in Canadian mining company
Gabriel Resources came under scrutiny after Romanian
Prime Minister Victor Ponta said legislators were set to reject
Gabriel's 14-year bid to build an open-cast gold mine. With the
project in jeopardy, Gabriel's stock price dropped 37 percent in
Paulson is Gabriel's biggest shareholder with a 16 percent
stake, but a person familiar with the firm said that for the $18
billion firm the investment is small and unlikely to have a very
large impact on overall returns.