The Banking and Strategy Initiative

Chillin' out till it needs to be funded

John Paulson misses BankAm upswing, Wells Fargo and Citi | Fund insight

While he still owns JP Morgan and Hartford (HIG), his $157 mln position in JP Morgan Chase is not half as profitable as the near 50% revival in Bank of America in the 6 weeks of 2012 at $8 and the 24% rise in Citibank at $32 now. JP Morgan s also trading at a much more palatable $38 even as the $26 bln settlement is mostly provisioned into the bank books last year itself.

Of course the current price levels could just be the start of the way down for the banks, and for Paulson’s Revovery fund, it

English: The Niels Esperson Building from the ...

Image via Wikipedia

could not be the right time to invest in  this recovery till a couple of bad Mondays ( when markets are open) correct the situation. The Weekend global shock has emerged as the new variable, though most of S&P’s Friday/Saturday moves have been known and factored in and Paulson, John has been caught on the wrong chair at the wrong flight terminal again.

Paulson had 25 mln shares of Citi and though not as many as Bruce Berkowitz, he held more than 64 mln Moynihan/Krawcheck stocks he sold in December, while licking his chops at $5 a pop BAC

Paulson is hoping fro a break up of the Hartford this time, knowing he could not bet on the mortgage settlement last month after his 2011 performance



Enhanced by Zemanta


%d bloggers like this: