John Paulson Is Struggling to Hold On to Client Money

The exodus continues... part two. As opposed to my earlier post about Tudor Investment Corp. , the assets leaving the firm are for a good reason. Paul Tudor Jones is suffering from underperforming with a mid single digit return over the last several years. On the other hand, John Paulson has had horrific losses, even as bad as 50% in one year!.this is a prime example of investors not doing enough due diligence about what is generating returns. Paulson's claim to fame was shorting the housing market in 2008. While he made exceptional money, people must realize that it came from a concentrated position. Following that trade, Paulson has had roller coaster like returns (mostly down!) because when you make large concentrated bets and lose, you lose big! Riding a name like Valeant down from $200 to the teens should be unacceptable to any manager. That's why they call it a HEDGE fund! You're supposed to hedge! I am not a billionaire like Paulson, but if I ever become one, it will be because I prevented situations like Valeant from happening. WE're being paid a premium to do a better job protecting and growing client assets than traditional managers. Once you stop doing that, then there's no need for a client to stay with you.