Below please find Paulson & Co's year end letter to investors. It is a beast at 102 pages. They probably went with lenght in order to describe why their performance was so sub-par. In 2011 the merger fund was down 10%, gold fund was down 10.5%, credit opportunities was down 18%, recovery was down 18%, advantage fund (the main one) was down 36%, and the advantage plus fund was down 52%.
In the letter they go through their current positioning and their view on the world. They spend some time discussing how various assets performed post Lehman and compared it to the current situation in Greece. They then walk through some current positions. They are fairly bullish on AMC (believe it could be taken out), Ralcorp, Delphi, Caesers, Supermedia, etc. He also talks a bit about some OTM hedges he bought to guard agaisnt inflation that would return many-many multiples if inflation were to run up. My favorite of the detailed discussions on the portfolio was on Hartford where he thinks its worth $32 versus a current price of $20.79. This is especially interesting since on their last quarter call he chastised management for their lack of value creation. Definetely one worth watching.
Enjoy.
Paulson 2011 Year-End Firm Report
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