Paulson Europe Profit Plummets

Jan 9 2013 | 12:03pm ET

It's no surprise, given how badly its funds did in 2011, but Paulson & Co.'s European unit did not do so well that year.

London-based Paulson Europe's profit fell 86% in the year-ended March 31, 2012. The unit earned just £3.7 million in the fiscal year, which coincided with the huge losses Paulson suffered in 2011, when its largest hedge fund lost more than half its value.

Things don't look to get much better when Paulson Europe files its accounts for the current fiscal year: Three of its funds, including Advantage Plus, which lost 51% in 2011, suffered double-digit losses again last year.

Paulson Europe's profit was split between four members. Two of them, Mina Gerowin Herrmann and Nikolai Petchenikov, have since left the firm. Only Harry St. John Cooper and Paulson Ltd. remain, although Paulson named gold strategist John Reade to the upper echelon of Paulson Europe last month.

Despite the losses, and Paulson's blaming much of them on bad bets in Europe, Paulson Europe did increase its staffing, from 11 to 16.

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