UPDATE: Citigroup Dumps Paulson Hedge Fund

August 23, 2012 12:53 PM EDT
(Updated - August 23, 2012 2:58 PM EDT)

Reports out today say that Citigroup's (NYSE: C) private bank is pulling $410 million from two of John Paulson's Paulson & Co. hedge funds. The massive withdraw is meant to stem losses at the private bank, said sources.

Paulson's hedge funds total $21 billion in assets.

This year losses at the two Paulson funds have totaled 19.5 percent and 13 percent, with much of the losses related to his outsized position in SPDR Gold Shares (NYSE: GLD). Paulson funds own 21.8 million shares of GLD or 5.14 percent of funds total assets. In the past 12 months, GLD is lower by 8.74 percent.

Paulson is most famous for being short subprime mortgages prior to housing crash. In 2010, his fund recorded profits of $5 billion.
(Updated amount pulled out of $410 million. It was previously reported to be $500 million.)

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