Tuesday, 23 August 2016
Last updated 34 min ago
Jan 15 2008 | 1:00am ET
Paulson & Co., the New York-based hedge fund that racked up astronomical gains betting against the subprime mortgage market, has hired former Federal Reserve Chairman Alan Greenspan as an adviser. Under the terms of the agreement, Greenspan, who already serves as an adviser to Deutsche Bank and Pimco, will not work with any other hedge funds.
Greenspan will serve on Paulson’s advisory board, where he will provide ongoing advice to the firm's investment management team. It is not clear how much he’ll be paid in his new role.
"Paulson & Co. Inc. is one of the world's leading hedge funds," Greenspan said. "I look forward to adding my perspectives on the global economy to that of Mr. Paulson and his team."
Greenspan served as head of the Fed for 18 years, under four presidents. His last term expired in 2006.
"Few people, if any, in the world have the breadth of experience with, and depth of understanding of, global financial markets as Dr. Greenspan," Paulson said. "Anticipating the direction of the economy, and assessing the potential for and severity of a U.S. recession, are fundamental in formulating current investment strategy. Dr. Greenspan's position as Chairman of the Federal Reserve Board for 18 years, through multiple market cycles, gives him a unique perspective from which to help our investment management team make critical decisions."
One might think that Paulson isn’t in need of the help: The firm’s credit hedge funds enjoyed triple-digit returns last year, after president John Paulson correctly predicted the subprime slide.