Billionaire hedge-fund manager John Paulson posted gains in his firm’s main strategies last month, in part from an investment in hotel company Extended Stay America Inc. (STAY), two people familiar with the matter said.
Paulson’s event-driven Advantage fund surged 13 percent in November and 30 percent this year, said the people, who asked not to be identified because the information is private. The firm, based in New York with $20 billion in assets, posted increases last month in its credit, merger and Recovery funds, the people said.
Billionaire hedge-fund manager John Paulson’s Advantage Plus fund seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage. Photographer: Jin Lee/Bloomberg
Nov. 13 (Bloomberg) -- Jim Donald, CEO at Extended Stay America, discusses his company’s first day of trading after raising $565 million in an initial public offering and the recovery of the lodging industry. He speaks on Bloomberg Television’s “Market Makers.”
Paulson, 57, benefited as stocks rallied and Extended Stay, the largest owner of mid-price long-stay hotels in the U.S., jumped 26 percent through the end of the month since its trading debut on Nov. 13. Paulson & Co., best known for making $15 billion for investors in 2007 by betting against subprime mortgages, is rebounding from losses tied to gold and two years of wrong-way calls on the economy. More than 75 percent of the firm’s capital has surpassed fund-level high-water marks, Paulson & Co. told investors in August.
I expect the hilton IPO to do well just like STAY. BX, since they are not selling any of their ownership stake, has a vested interest to see this IPO priced in the lower end of the expected range. This should give some upside to IPO investors which should help the BX stock price too.