Deutsche Bank and Paulson & Co Inc announced this week the launch of a UCITS-III version of John Paulson&rsquo
Deutsche Bank and Paulson & Co Inc announced this week the launch of a UCITS-III version of John Paulson’s flagship Advantage Fund. Hosted on the bank’s EUR12.7billion Platinum platform, the DB Platinum IV Paulson Global Fund is an adapted version of the offshore Advantage strategy and is linked to the performance of a Synthetic Managed Basket. Paulson personally selects the components of this “basket” in line with UCITS regulations. The new fund opens the door to investors keen to gain exposure to one of the hedge fund industry’s major heavyweights; Paulson manages over USD30billion in AUM, his Advantage Fund having generated annualized returns of 22 per cent since inception to make it the world’s top-ranked fund in 2008, according to Barron’s. The basket’s core strategy is event-driven arbitrage, establishing long/short positions in companies involved in mergers, distressed debt and other special situations using both debt and equity instruments to generate uncorrelated returns. As is typical of newcits, the fund offers weekly liquidity. Paulson, commenting on the launch, said: “Implementing our existing event arbitrage strategy via a UCITS vehicle allows us to provide a liquid, regulated, onshore European fund that helps to further diversify our investor base.” He said they had chosen Deutsche Bank because of its extensive operational and risk management expertise. Deutsche Bank’s Global Head of Fund Derivatives, Stephane Farouze, added: “We are delighted to collaborate with Paulson on their entry into UCITS and to add them to our platform. Paulson’s expertise and long standing success will make this particular product attractive toinvestors.”
