It looks like things are quickly getting from bad to worse for the former “man who made too much.”
Dealbook reports that the wealth management arm of Bank of America Merrill Lynch has pulled out over $80 million of their clients’ capital from Paulson & Co.’s Advantage fund. Paulson’s Special Situations fund meanwhile has been placed by the firm under “heightened review” over concerns “regarding significant concentration in illiquid investments, as well as heightened volatility and risk profile for the funds.”
Paulson has definitely not been doing well this year. One of his investments, Greece’s Piraeus Bank, has been slaughtered ever since the Athens market reopened the other day. His massive bets on Puerto Rico, which he called “the Singapore of the Caribbean,” currently look a little sketchy after the U.S. territory defaulted on their debt. Compounding problems for him as well is his gigantic position on GLD, which we all know is not something you’d want to be holding right now.
At least he has company, David Einhorn, one of the largest holders of the GDX gold ETF, is having a nasty year as well.
As for Bank of America, they’ll be getting their money back by the beginning of October.
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