At their peak, his hedge funds made $36 bln, yet in 2018, this number dropped to $6 bln. Quantum Endowment Fund, begun by George Soros in 1973,  has racked up $32 billion in net gains. Thank you. Paulson's hedge fund has piled up gains of 26 billion since inception in 1994-- 3rd biggest killing of all hedge funds. [ssba] “Investors that do the best, and have done the best, are those that stay and compound at above-average rates over the long term.”– John Paulson. dollar. DB: Speaking of JP, just for a little back ground, how did he make his money? His current estimated net worth is $300 million as of April of 2021. According to Forbes, John Paulson's net worth is $4.2 bln. Stock quotes by finanzen.net. He  expects all his funds "to outperform in 2011. By early 2006 the 49-year-old Mr. Paulson had reached his twilight years in accelerated Wall Street-career time. 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Previously I was National Editor and Senior Editor at Forbes Magazine, New York Bureau Chief of The Boston Globe and Wall Street correspondent of The Economist. ", The funds held $20 billion in 40 different distressed situations where most of the companies have "repaired their capital structures.". No one more so than John Paulson, the billionaire investor who made a fortune by betting against the 2007 housing bubble. Made In NYC | He leads Paulson & Co., a New York-based investment management firm he founded in 1994. Instead, it was his huge bet that the American housing bubble of the early 2000s would collapse. Paulson  is a buyer of stocks because he sees the equity risk premium in the market as "the highest it has been in over 50 years., indicating to us that equities are due to rise as the current economic environment is by no means the most challenging it has been in 50 years," he wrote in his yearend letter which was posted Friday on the internet. By my figuring then, the total take comes to roughly $6 billion before  taxes. He has been called "one of the most prominent names in high finance" and "a man who made one of the biggest fortunes in Wall Street history." Palast: Remember when the mortgage market went over a cliff? He is the architect of the “The Greatest Trade Ever,” according to The Wall Street Journal. Please explain thoroughly, best answer receives best answer. Paulson & Co was founded in 1994 with a $2 million investment. AR reports that Paulson’s 2010 earnings even bested the $3.7 billion he made in 2007, when he rocketed to hedge fund fame with his enormously successful wager on the housing market’s collapse. His forte was investing in corporate mergers that he viewed as the most likely to be completed, among the safest forms of investing. John Paulson is often called “one of the most prominent names in high finance”.With a net worth of over $11B, and a fund with $19B under management, the billionaire certainly lives up to his … Paulson is optimistic that gold will outperform for the next 5 years and is "the ideal vehicle to hedge against the risk of the U.S. The secret to the spectacular returns  Paulson  and his employees  reported for 2010 is due to their keeping  much of their  personal money- $14.9 billion or 42% of the total assets under management($35 billion)-- in the funds. Paulson started his firm in 1994 and built his fortune by betting against the US housing market more than a decade ago. In 2007, just as the real estate bubble was about to burst, plunging the world into a major financial crisis, the hedge fund Paulson & Co. reaped more than $4 billion by trading in the beleaguered mortgage market. How did John Paulson make money? HAPPY ENDING When his old friend John Paulson told him the next housing bubble was on the horizon in hopes of getting him to invest in his fund, … Paulson & Co. Inc. is an American investment management firm, established by its president and portfolio manager, John Paulson in 1994. With a salary of $3.7bn, John Paulson has plenty of money. Stock analysts are having a moment in the sun as the market gets flipped upside down. Paulson also donated $650 million in cash during 2013 and 2014 to his private philanthropic foundation, which in turn put most of the money in his hedge funds, tax documents show. He had been eclipsed by a group of investors who had amassed huge fortunes in a few years. 64-year-old Paulson will be converting his hedge fund, John Paulson & Co, into an investment firm solely meant for his family. In this comparison the potential return on stocks is double the return on bonds. Paulson netted huge profits for his clients by making bets against the US housing market in early 2006, when he was 49 years old. Paulson’s current achievements are: As you may recall, in the years after the tech bubble burst, another bubble was … Opinions expressed by Forbes Contributors are their own. 76.4% of retail CFD accounts lose money, Registration on or use of this site constitutes acceptance of our, Visit Business Insider's homepage for more stories. The Paulson funds made gross gains … John Paulson launched his hedge fund in 1994. Paulson made his way into the financial history books thanks to what many now call the "greatest trade ever". © 2021 Forbes Media LLC. He also sold off positions in major banks like Bank of America, and went long Anadarko, the oil and natural gas producer. Hedge fund manager John Paulson has profited more than anyone else from the financial crisis. John Alfred Paulson (born December 14, 1955) is an American billionaire hedge fund manager. Some of Paulson's personal share in his funds must come from reinvesting the $4 billion he made going short against the subprime mortgage bubble in 2007. He had said his own wealth made up 75% to 80% of the firm's assets. He was the third of the four children of his parents. When famed hedge-fund manager John Paulson speaks, people listen. That $14.9 billion commitment is revealed in Paulson's yearend letter to investors. Leon Cooperman called "private equity" a scam and returned billions of client money to run his own family-focused firm. We spoke to 11 of the top-ranked on Wall Street to get their forecasts and single-stock picks. "With one chapter closing, a new one is beginning for me and I look forward to continuing as an active participant in financial markets," Paulson wrote in his letter to investors. "The last 26 years of running an asset management firm have been thoroughly rewarding," the billionaire wrote in a letter to investors seen by Bloomberg. », 10 top crypto tokens, plus the rising stars of equity research ». Disclaimer | Did Mr. Burry make that much in his former career or did he earn his massive fortune some other way than being a hedge fund manager? John Paulson was born John Alfred Paulson, on December 14, 1955, in Queens, New York, to Alfred G. Paulson (born Alfredo Guillermo Paulsen) and Jacqueline. And it's no wonder. 64-year-old Paulson will be converting his hedge fund… The Paulson Gold Fund was up over 35% on the year, as positions in Anglo Gold, Osisko and GLD, the giant gold ETF all paid off bigtime. Overall, the fund's strategy made a transition during the year from a short equity bias  with a focus on being long distressed securities to a long equity event focus, according to Paulson's yearend letter. 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