John Paulson is an American billionaire and hedge fund manager. Born in Queens, New York in 1955, Paulson grew up in a middle-class family and studied finance at New York University’s Stern School of Business. After graduation, he started working at Boston Consulting Group before moving to Bear Stearns in 1980.
He is the founder and president of Paulson & Co., a New York-based investment management firm that manages approximately $9 billion in assets.
Paulson is known for his successful bets against the subprime mortgage market leading up to the financial crisis of 2008. His firm made an estimated $15 billion in profits by betting against mortgage-backed securities, which were at the center of the crisis.
Early Days
Before founding Paulson & Co. in 1994, Paulson worked for several years at Bear Stearns, a now-defunct investment bank. He started his career in finance in 1980 as a mergers and acquisitions analyst at the investment bank Odyssey Partners.
Success
Paulson’s success in shorting the subprime mortgage market made him a household name in the finance industry. He was featured in a number of documentaries and news programs, including the documentary “Inside Job,” which explored the causes of the financial crisis.
Despite his initial success, Paulson’s performance has been mixed in the years since the financial crisis. His firm has struggled to generate the same level of returns as it did during the crisis, leading some investors to pull their money from the firm.
Net worth
Paulson’s net worth is estimated to be around $4.8 billion, according to Forbes. He made his fortune by betting against the housing market in the mid-2000s, a move that earned his hedge fund, Paulson & Co., billions of dollars in profits.
Philanthropy
In recent years, Paulson has shifted his focus to philanthropy. He has donated millions of dollars to causes such as conservation and education. In 2015, he donated $400 million to Harvard University, the largest donation in the school’s history.
Investments
As of May 2023, Paulson’s fund has holdings in several major companies. According to filings with the Securities and Exchange Commission, Paulson & Co. held positions in companies such as Bristol-Myers Squibb, Facebook, and Time Warner at the end of 2022. The fund also held a significant stake in the SPDR Gold Trust, an exchange-traded fund that tracks the price of gold.
Setbacks
Despite his success, Paulson has had his share of setbacks. In 2011, his fund suffered significant losses after a failed investment in a Chinese forestry company. Paulson later admitted that the investment was a mistake and that his due diligence was lacking.
Overall, John Paulson’s career in finance has been marked by both tremendous success and some setbacks. While his bets against the subprime mortgage market made him one of the most successful hedge fund managers of all time, his recent performance has been less impressive. Nonetheless, Paulson’s legacy as a finance industry icon is secure, and his philanthropic efforts continue to make a positive impact in the world.
