Paulson's Citi Bet Earns $1B, Drives '10 Turnaround

Jan 25 2011 | 1:56pm ET

Paulson & Co.'s flagship hedge fund was still down by double-digits in August. It ended the year up double-digits. How? With (more than) a little help from Citigroup.

John Paulson's hedge fund had been hard-hit by his potentially premature bet on the U.S. economic recovery in the early going of 2010. But his big investment in Citi turned a $1 billion profit for the firm in the second half of the year, Paulson's most profitable bet of the year.

Paulson's Advantage Plus Fund soared 13% in December to end the year up 17%. It's Recovery Fund was perhaps the biggest beneficiary of Citi's turnaround, rising 14% last month and 24% on the year.

"We believe the U.S. economy is recovering, and we anticipate continued growth," Paulson wrote to investors.

"In addition to maneuvering our investment strategy based on where we are in the economic cycle, a large part of our success has been based on anticipating market events before they are generally recognized," he gloated.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...