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Oil investors Carl Icahn, John Paulson lose big


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THE WALL STREET JOURNAL

Oil prices drop hits Carl Icahn, John Paulson hard

By Juliet Chung, Gregory Zuckerman, and David Benoit

Published: Dec 19, 2014 10:03 a.m. ET

Big investors suffer large losses as energy-related bets sour

The recent slide in oil prices has caused sharp losses among some of Wall Streets biggest names, the latest in a series of bad bets made by star investors during 2014.

Carl Icahn, the billionaire activist investor, has seen his firms holdings of Canadian oil-and-gas company Talisman Energy Inc. TLM, +0.90% tumble $230 million since late August, based on an analysis of his holdings, a rare stumble for the prominent investor. Icahn Associates Corp. was the largest holder of Talisman, with more than 7% of the companys shares.

The Icahn losses were more than $540 million as recently as Dec. 11 before Talisman agreed to be purchased, boosting the stock. At the deal price, he will have lost about $290 million, according to the analysis. In this oil environment, Im certainly glad a bidder came along for it, Icahn said. I believe oil is going to go lower, but I think over the long term it presents great opportunities.

The $19 billion firm run by billionaire John Paulson had one of its largest losses of the year on a gamble that big oil firms would gobble up smaller ones, according to investors and people briefed on the trade. Instead, some smaller energy stocks held by Paulson & Co. plunged in value amid weak crude prices. Mr. Paulsons strategy could yet pay off; many analysts expect consolidation in the energy sector as larger companies buy smaller firms now under pressure.

Many fund managers werent prepared for the drop in oil prices, as smaller funds posted losses of as much as 40% due to their exposure to energy companies and an oil-related currency crisis in Russia, investors said.

http://www.marketwatch.com/story/oil-prices-drop-hits-carl-icahn-john-paulson-hard-2014-12-19

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Exactly, every penny is watched like a hawk when you play the wealth game like these guys.

They are not like the lotto winners and uneducated pro athletes / celebrities who go broke only years after they've been out of the spotlight. You don't actually think some of these celebrities have sustainable yet ultra lavish lifestyles?

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I think they do. All these rich dicks are competing against each other over who can accumulate the most wealth and power.

He cares in the idea that less people will take his advice but hes part of the giving pledge to donate all his money when he dies.

They become rich by taking chances and having the right connections.

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If he just treated money like it was disposable, and didn't care about making investments that lose money, how would he have got rich in the first place?

money is disposable it takes certain people with the balls to go for the big chances hes one of them.Hes gotten rich by being on the right side of a good investment hes also lost money before he bought talisman on the cheap side and hes looking to sell it for about 9.3 billion dollars to a spanish company.Guy makes money 200 million doesnt mean anything when your making deals in the billions.

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