THE BRITISH subsidiary of New York-based investment manager Paulson & Co recorded a 30 per cent decline in turnover last year, it emerged yesterday.
The hedge fund has fallen foul of what proved to be a difficult year for hedge funds globally. According to accounts published on Companies House, Paulson Ltd saw its takings for the year until the end of March drop to £10.5m from £15.2m during the same period the previous year.
Unsurprisingly, the company’s operating profit took a substantial hit as well. The firm’s profits fell to £2.3m for the year, representing a 65 per cent loss on the £6.5m accumulated in the previous year.
Despite the decline in takings, the company experienced a small rise in its net assets, which increased to £5.5m from £5.3m in 2013.
Paulson Ltd’s parent company was founded in 1994 by billionaire American hedge fund manager John Paulson.
The investment behemoth specialises in event-driven arbitrage strategies, including merger arbitrage, bankruptcy reorganisations and distressed credit, structured credit, recapitalisations, restructurings and other corporate events. It manages $23bn in assets and employs approximately 125 employees in offices located in New York, London and Hong Kong.
The firm has seen both big wins and big losses in recent years as a result of concentrated bets on gold, mortgages, mergers and the European debt crisis.