Paulsons Event Fund Plunges 14% on October Losses

Paulsons Event Fund Plunges 14% on October Losses

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Business

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The video discusses the challenges faced by hedge fund managers, particularly John Paulson, in October. Paulson's event-driven fund suffered significant losses due to failed investments in companies like AbbVie and Shire, as well as Fannie Mae and Freddie Mac. The media often highlights negative performance, overshadowing any positive months. Additionally, hedge fund managers have been grappling with market volatility, which they initially desired but later found challenging. Paulson's reputation remains tied to his past success during the mortgage crisis, with many viewing him as a one-hit wonder.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the percentage loss of John Paulson's event-driven fund in October?

25%

20%

14%

10%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which failed deal contributed to John Paulson's fund losses?

AbbVie and Shire

Pfizer and Allergan

AT&T and Time Warner

Sprint and T-Mobile

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant challenge John Paulson faces in regaining his reputation?

Lack of investment opportunities

Regulatory changes

Media focus on negative months

High competition from other hedge funds

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What do some hedge fund managers desire more of in the market?

Stability

Volatility

Lower fees

Government intervention

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What past success is John Paulson known for?

Shorting the oil market

Betting on technology stocks

Investing in emerging markets

A $15 billion bet during the mortgage crisis