Last Year Golden For Paulson, Who Earns $5B

Jan 28 2011 | 12:34pm ET

John Paulson's returns last year didn't nearly match his huge gains in 2007, but that didn't stop it from being better in one crucial aspect.

The Paulson & Co. chief is personally more than $5 billion richer today than he was at the beginning of 2010. That tops the whopping $4 billion he made for himself in 2007, when his bets against the subprime mortgage market paid off with triple-digit returns, and likely sets a new record.

The haul is even more remarkable given that Paulson's funds were in the red—deeply—as recently as August. But the final four months of the year produced huge returns, leaving his flagship hedge fund up 17% on the year. Other funds rose between 7% and 35%.

Paulson himself did even better. While $1 billion of Paulson's earnings last year came from performance fees earned by the $30 billion firm, the rest was pure performance, the gains reaped by the billions he has invested in his own funds, The Wall Street Journal reports. But most of Paulson's assets are now held in the firm's gold-denominated share classes, which, thanks to a booming year for the metal, returned as much as 45%.

Paulson is hardly the only hedge fund billionaire to make further billions this year. Ray Dalio of Bridgewater Associates, James Simons of Renaissance Technologies and David Tepper of Appaloosa Management each took home between $2 billion and $3 billion last year, the Journal reports.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.