John Paulson Set To Make A Billion Dollars Plus in 2008
The people who figured that John Paulson was in for a letdown after posting such astonishing returns in 2007 are in for a letdown of their own.
Paulson and Co. Inc. continues to outperform the overall hedge fund industry (and markets in general) by an extremely wide margin.
Because of these outsized returns, Paulson's hedge funds continue to receive an avalanche of new investor capital. At last check, Paulson and Co. Inc. had approximately $35 billion dollars under management, making it one of the largest hedge fund companies in the world. While other hedge funds are shrinking or going out of business, Paulson's funds continue to blossom and outperform the markets.
According to a recent article on Bloomberg.com, four of the top 20 performing hedge funds in 2008 belong to Paulson's company.
The "Advantage" funds have done particularly well - the $10 billion dollar Advantage Plus Ltd fund was up 33% through November, while the smaller $5 billion dollar "Advantage Ltd" fund was up 21% YTD.
This comes a year after Paulson burst onto the scene, scoring triple-digit returns for his Paulson Credit Opportunities and Paulson Credit Opportunities II funds. Paulson correctly surmised that the mortgage market was about to implode, and profited handsomely for both himself and his investors when the housing market started to collapse. Even with investors and other hedge fund managers telling him that he was crazy for betting against the housing market, Paulson stuck to his guns and made a fortune for Paulson and Co. shareholders (including himself) in 2007.
John Paulson became an overnight sensation, with many media outlets latching on to his every word.
The adulation and success has carried over into 2008, and now John Paulson is one of the most revered hedge fund managers in the world. While the hedge fund industry continues to contract, Paulson and Co. just keeps growing.
Can John Paulson keep his Midas touch in 2009?
Filed under: Hedge Fund News | Trader Profiles