John Paulson

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John Paulson
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Occupation Founder & Chairman; Chairman
Employer Paulson & Co. Inc.

John Paulson is the founder and chairman of hedge fund Paulson & Co. Inc. and the chairman of Paulson Investment Co. Inc. He made billions betting against the subprime market using credit default swaps ahead of the housing crisis.[1]


Background

Paulson has been involved with with father's investment company since 1974.

In August 2010, he was named chairman of the investment company.[2] Paulson has operated Paulson & Co. since 1994.

As early as 2005, Paulson noticed that residential real estate prices were growing at levels that were not sustainable and would generate a crisis. He used credit derivatives to bet against the housing market and reaped billions as a result. [3]

Since his rise to fame during the financial crisis, Paulson's hedge fund business had its struggles - his flagship fund lost 18 percent in 2016 and 23 percent in 2017. The firm's assets under management were $38 billion in 2011. By 2018, Paulson & Co's assets totaled some $9 billion. The underperformance resulted in cuts to staff in March 2018.[4]

In January 2019, Paulson said he was considering closing down his fund to form a family office after years of investor outflows. [5]

In November 2009, Paulson gave $20 million to NYU Stern. The intention was that Paulson’s gift would endow two faculty chairs – the Alan Greenspan Chair in Economics and the John A. Paulson Professor of Finance and Alternative investments – as well as provide significant support for the school’s Concourse project, a major facilities renovation currently underway, and scholarship aid for undergraduate students.[6]

Education

Paulson holds Series 7, 24, 55 and 63 FINRA Licenses.

References

  1. Hedge Fund Manager Paulson Earns $3.7 Billion. Reuters.
  2. Management Profiles. Paulson Capital.
  3. John Paulson: The Man Who Turned Contrarian Bets Into Billions. Business Insider.
  4. John Paulson takes an axe to his struggling hedge fund. Financial Times.
  5. Paulson to Decide on Switching to Family Office in Two Years. Bloomberg.
  6. Press Release. Earth Times.