GO
Loading...

John Paulson Faces Some Frustrated Investors

John Paulson
Bloomberg | Getty Images
John Paulson

Many of Paulson & Co.’s investors hung with it last year, despite an annus horribilis in which the company’s flagship hedge fund lost 35 percent. But with returns continuing to sag amid a rising equities market, some of those investors are now jumping ship from John Paulson's eponymous hedge fund.

Citigroup announced last week that it was pulling Paulson off its hedge-fund investment platform and planned to take back $410 million in assets. (Watch More: Citi Private Bank Pulls About $500 Million from Paulson Funds)

Morgan Stanley’s brokerage firm has reportedly had the fund company on watch for possible removal from its hedge-fund platform for months now. And other investors big and small are considering redeeming their capital soon as well, say bank officials and fund of funds managers.

Bank of America, another big investor of Paulson’s, has recently expressed support for the fund company. But at a conference call scheduled for late Tuesday afternoon with financial advisors, Paulson representatives may face some sharp questions about performance and strategy.

More...

________________

Questions? Comments? Email us atNetNet@cnbc.com. Follow NetNet on Twitter @ twitter.com/CNBCnetnet. Facebook us @ www.facebook.com/NetNetCNBC

NetNet TV

Wall Street