Tags: John | Paulson | gold | richest | Top | Earning | Hedge

John Paulson’s Golden Touch Makes Him Richest Hedge Fund Manager

Friday, 01 Apr 2011 01:08 PM

John Paulson, head of the hedge fund that bears his name, was the top-earning manager of 2010, according to AR Magazine. Paulson earned $4.9 billion in 2010 thanks to bets on gold at Paulson & Co., shattering his record in 2007, when he earned $3.7 billion by betting that housing market was about to collapse.

Ray Dalio, of Bridgewater Associates, followed in second, earning $3.1 billion.

The top 25 hedge fund managers on the magazine's annual Rich List earned a combined $22.07 billion in 2010 — down nearly 13 percent from the $25.33 billion they earned in 2009, but the third-best year for the ranking since it was first published in 2001.

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John Paulson (AP Photo)
"In 2001, the combined income of the top hedge fund managers was less than $5 billion — about what Paulson alone made in 2010," says Michelle Celarier, editor of AR.

Nearly 90 percent of Paulson's personal money is invested in either his gold fund, which returned more than 35 percent last year, or in the gold shares of his other funds, according to AR Magazine.

Gold has been a popular investment in recent years, acting as a hedge to volatile currency markets.

Gold is trading around $1,425 an ounce, although talk that the Federal Reserve will tighten monetary policy to control inflation is bringing in the sellers.

"We will most likely see mounting pressure on the Fed to start curbing liquidity should macro data continue improving," says Andrey Kryuchenkov, an analyst at VTB Capital in London, according to Bloomberg.

"Rising interest rates increase the opportunity cost of holding non-interest bearing bullion."

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John Paulson, head of the hedge fund that bears his name, was the top-earning manager of 2010, according to AR Magazine. Paulson earned $4.9 billion in 2010 thanks to bets on gold at Paulson Co., shattering his record in 2007, when he earned $3.7 billion by betting that...
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2011-08-01
Friday, 01 Apr 2011 01:08 PM
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