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"Because Paulson & Co. sold a substantial portion of its Sino-Forest shares from early 2010 through May 2011, the net realized loss to the portfolio for the full life of the position was C$105 million," the statement said, a figure in Canadian dollars nearly equal to $105 million.
A realized loss occurs when an asset is sold for less than it cost to acquire.
With low turnover (and the occasional realized loss) comes relatively low capital-gains taxes for Third Avenue investors.
The biggest sale: Mendillo sold a net $1.9 billion of hedge fund assets, posting a net $148 million realized loss and $1.2 billion of net unrealized losses.
In addition to the $439 million net realized loss, the endowment recorded a $1.9 billion change in net unrealized losses in its private equity portfolio.
The lender is likely to produce the first realized loss for taxpayers under the government's Troubled Asset Relief Program, which propped up the firm with $2.3 billion in return for preferred shares.
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But, in fact, the realized losses were minuscule when compared with the widespread suffering they averted.
The company, the world's largest insurer, said for the first time that realized losses on the portfolio "could be material" to quarterly earnings.
Net profits sank on nearly $1 billion in realized losses and related adjustments, tied largely to the falling value of derivatives used in the company's hedging programs.
"In May they said they will see $1.5 billion to $2 billion in realized losses — a 30 percent write-down on an average for these riskier securities.
On the other end of the spectrum, the number of tax returns on which taxpayers reported negative income — because their realized losses were greater than their total income — leaped 31 percent, to 2.5 million.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com