John Alfred Paulson (born December 14, 1955) is an American #investor, #hedgefund manager and philanthropist.
#World’s #Top #Traders
John Alfred Paulson leads Paulson & Co., a New York-based investment #management firm he founded in 1994. He has been called “one of the most prominent names in high finance” and “a man who made one of the #biggest #fortunes in #WallStreet #history”.
His prominence and fortune were made in 2007 when he earned “almost $4 billion” personally and was transformed “from an obscure money manager into a #financial #legend” by using credit default #swaps to effectively bet against the U.S. #subprime #mortgage lending market. In 2010, Paulson earned $4.9 billion. The Forbes real-time tracker estimated his net worth at $7.8 billion as of December 2017.
The Big Short – Hedge Fund Manager
Paulson became world-famous in 2007 by #shorting the US #housing #market, as he foresaw the subprime mortgage crisis and bet against mortgage backed securities by #investing in credit default swaps. Sometimes referred to as the greatest trade in history, Paulson’s firm made a fortune and he earned over $4 billion personally on this trade alone.
Paulson and his company specialize in “event-driven” investments—i.e. in mergers, acquisitions, spin-offs, proxy contests, etc.—and he has made hundreds of such investments throughout his career. His investment strategy is one company announces that it’s buying another, rushing to purchase the target company’s shares, shorting the acquirer’s stock (unless it’s a cash deal), and then earn the differential between the two share prices when the merger closes”. An example of proxy event investment Paulson made was during #Yahoo’s proxy contest in May 2008, when Carl Icahn launched a proxy fight to try to replace Yahoo’s board.
In 2010, he set another hedge fund record by making nearly $5 billion in a single year. However, in 2011, he made losing investments in Bank of America, #Citigroup and the fraud-suspected China-based Canadian-listed company, Sino-Forest Corporation. His flagship fund, Paulson Advantage Fund, fell sharply in 2011. Paulson has also become a major investor in #gold. Paulson rarely gives television interviews and told one interviewer, “I avoid the #media.”