Hedge Funds Performance

Short bias gives Paulson Recovery a strong start


Paulson Recovery fund experienced a bit of its own March Madness when, in a rare moment at least in recent years, a vehicle managed by John Paulson lost steam. Despite its 2.26% loss for the month, the fund is still very much in the game, returning 5.77% for the first quarter as its financial shorts paid off.

Paulson Recovery, which was launched by Paulson & Co. in October 2008 in the midst of the financial crisis, aims to provide equity capital to struggling financial institutions. The portfolio's bearish stance helped it in last year's treacherous fourth quarter, when