rumour is that a closed-end fund will soon open that will give Canadian investors access to John Paulson’s greatest trades.
According to the Wall Street Journal, the fund’s units will be valued based on the performance of some of the hedge funds managed by Paulson.
The fund — which is basically a drawbridge allowing investors to overcome accredited investor limitations — will be listed on the Toronto Stock Exchange.
Strategies like this have not done very well in the past, notes The Journal.
Star Hedge Managers Corp, which is exposed to the funds managed by hedge fund managers Eric Sprott, Rohit Sehgal and Normand Lamarche, raised only C$75 million in an IPO in September 2008. The fund had a C$500 million maximum target.
And T. Boone Pickens Energy Fund, which gives investors access to T. Boone Pickens’ TBP Investments Management LLC recently listed and only raised C$28.1 million.