John Paulson Made $5 Billion Last Year

How’d you do last year? John Paulson made a cool $5 billion in 2010. Gregory Zuckerman explains how he did it:

So John Paulson made $5 billion –- for himself -– during 2010. A number of Journal readers have contacted us, wanting more specifics on how he pulled off such huge gains. Still more readers want to know: Will this golden touch continue?

First, a fuller explanation of the $5 billion personal gains. About $1 billion came from the 20% performance fee that Paulson & Co. reaped from the approximately $5 billion the hedge-fund firm generated for clients in 2010, as well as from management fees charged to clients of his $36 billion firm.

What about Paulson’s remaining $4 billion? Keep in mind that Paulson began 2010 with about $10 billion of personal investments in his hedge funds, his investors say. Those holdings rose about 40%, or $4 billion, his investors say.

Read the whole thing.

Posted by on February 8th, 2011 at 1:11 pm


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