The Business On... John Paulson, President, Paulson & Co
Thursday 09 September 2010
The hedge fund manager with the Midas touch?
Or so you thought. In fact, after several years in which it seemed Mr Paulson could do no wrong, his hedge fund company is experiencing a challenging year.
Returns are down, you mean?
Worse, Mr Paulson's funds have actually been losing money. His flagship, the $9bn Advantage Plus fund lost almost 7 per cent of its value during the second quarter and then dropped another 4 per cent last month. The $3bn Recovery fund is doing even worse – it was off almost 10 per cent in August after a 13 per cent loss in the second quarter.
What's gone wrong?
It seems the great man's judgement is not infallible after all. Mr Paulson shot to fame in 2007 when he made billions of dollars betting on the credit crisis before most people saw it coming. He netted a second fortune last year when his funds gambled on the US to recover. However, fresh reverses in the American housing market and wider economy of late seem to have caught him on the hop.
What does he say for himself?
Not a lot. Mr Paulson never gives interviews and rarely makes public appearances – he is even said to have an application written into his emails to prevent them being forwarded.
Can he turn things around?
His record remains outstanding. Mr Paulson is certainly smart enough – he won a string of academic awards from colleges such as Harvard.
But not everyone will be sorry to see him down?
It's fair to say Mr Paulson's very public success has prompted a backlash in certain quarters. He spent some uncomfortable hours giving evidence to Congress last year, with one politician accusing him of having "more money than God".
The politics of envy?
Maybe, and Mr Paulson has never felt the need to apologise for his wealth, even to Congress. Anyway, this year's disappointments are small beer: he remains astonishingly rich. Last year's payday was a cool $2.3bn.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
£28, 700: Whiskey Whiskey Tango: Property Management Company is seeking a brig...
£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...
£40000 - £45000 per annum: Ashdown Group: HR Manager / Training Manager (L&D /...
£40000 - £45000 per annum + Benefits: Ashdown Group: HR Manager - Edgware, Lon...