Hedge Funds

Paulson warns investors on volatility

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The Paulson & Co. founder remains bullish, but says oil prices could derail the recovery in the short term.

John Paulson, whose Advantage fund fell into negative territory for the year after losing 3% in March, warned investors in that fund that they should not expect a smooth ride in the coming months.

Speaking at an event held in Las Vegas earlier this month for investors in his Advantage Fund, the legendary founder of the $36 billion Paulson & Co. told investors they can expect more volatility in the Advantage fund, and those who don’t have an appetite for volatility should not be invested in the fund. The Advantage fund was down 1.27% for the year through March.