When Paulson & Co. does well by its clients, it also does well be itself.
The European arm of the New York-based hedge fund shop, which made headlines in 2007 when its funds posted triple-digit returns by betting against the subprime mortgage market, saw its profit soar more than tenfold during that period. Paulson Europe, which is based in London, posted profits of £37.1 million in the year ended March 31, 2008, it said in a filing with British regulators. In the year-earlier period, Paulson Europe made £3.5 million.
The profits are split among Paulson Europe’s four partners, one of which, Paulson Ltd., controlled by parent firm Paulson & Co., received £31 million. The £6.1 million left went to partners Nikolai Petchnikov, Harry St. John Cooper and Mina Gerowin Herrmann.