Some of John Paulson’s funds have been wiped out in the past two months.
Bloomberg News’ Katherine Burton and Simone Foxman report that the Paulson’s flagship merger-arbitrage fund, Paulson Partners, fell 6% in September and is now up 0.6% for the year.
The Advantage fund, which seeks to profit from company spinoffs, takeovers, and bankruptcies, fell 8.5% last month and is now down 12% for the year, the report said.
Those funds both got crushed in August during a period of market volatility.
Paulson, who became famous for his 2007 bet against subprime mortgages, had his second-worst performance ever last year, with his Advantage Plus fund falling 36% and his Advantage fund falling 29%. In 2014, Paulson Partners ended the year up 0.8%, while the Enhanced fund fell 1.6%.
Paulson isn’t alone. There are a number of big-name hedge fund titans that will be racing to rescue the remainder of the year.