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Bank of America’s wealth management unit is hosting a call with hedge fund manager John Paulson today, says the Wall Street Journal.This comes about a week after Citigroup’s private bank dropped him completely, which could mean withdrawals of up to $410 million from his fund.
So expect this call to be a grilling. Bank of America’s wealth management arm includes Merrill Lynch’s retail brokerage and U.S. Trust’s private-client business. Their advisers will likely express concerns over the Citigroup news and Paulson’s overall performance.
After losing more than half its value last year, Paulson Advantage Plus is down about 18% year-to-date, according to a person familiar with the matter. Paulson Advantage was down 36% last year and declined 13% this year.
It should be noted, though, that Bank of America has said that they have no plans to stop investing with Paulson. UBS, Deutsche Bank and Morgan Stanley, also Paulson investors, are sticking with him for now as well.