John Paulson
Encyclopedia
John Alfred Paulson is an American
hedge fund
manager, he is the founder
and President
of Paulson & Co.
, a New York-based hedge fund
.
Paulson became a billionaire by short-selling subprime mortgages
in 2007, and made $3.5 billion that year. In 2010, he beat a hedge-fund record by making nearly $5 billion.
In 2011, he made bad trades in Bank of America
, Citigroup
and the fraud-suspected China-based Canadian-listed company; Sino-Forest Corporation
. His flagship fund, Paulson Advantage Fund, was down over 40% as of September 2011. During that same time, Paulson had invested most of his personal fortune in gold
and it had grown by $3.1 billion from September 2010 to September 2011.
. Paulson attended school at the Whitestone Hebrew Centre in Whitestone
, New York.
He received his bachelor's degree in finance
from New York University
's College of Business and Public Administration (now the New York University Stern School of Business
). He earned his MBA
from Harvard Business School
.
and then left to join Odyssey Partners where he worked with Leon Levy
. Later he took a position in the mergers and acquisitions department at Bear Stearns
followed by partner status at the mergers arbitrage firm Gruss Partners LP. In 1994, he founded his own hedge fund, Paulson & Co. with $2 million and one employee.
In 2008, Paulson co-wrote a Wall Street Journal op-ed piece suggesting an alternative to the Treasury Secretary's plan for stabilizing the markets. Later that year he began a new fund that lent money to investment banks and hedge funds during the mortgage crisis. Paulson "shot to fame and fortune" when his investment strategies paid off during the subprime housing market.
of New York City
. He also has homes in Southampton, New York
and Aspen, Colorado
. John Paulson is unrelated to former U.S. Treasury Secretary Hank Paulson.
Paulson was ranked 39 on the 2011 Forbes list of the world's wealthiest people with a net worth of almost $16 billion. Between 2009 and 2011 Paulson made several charitable donations including, $15 million to the Center for Responsible Lending
, $20 million to New York University Stern School of Business
, $15 million to build a children's hospital in Guayaquil
, Ecuador
and £2.5 million to the London School of Economics
for the John A Paulson Chair in European Political Economy. Paulson has contributed $140,000 to political candidates and parties since 2000, 45% of which went to Republicans, 16% to Democrats, and 36% to special interests. In 2011, employees of Paulson & Co. contributed at least $61,050 to the campaign for John Boehner
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
manager, he is the founder
Founder
Founder may refer to:* the starter of a private or public company, see Entrepreneur* 'Founder', a hoof ailment. See Laminitis#Founder* Founder , management status for Internet Relay Chat...
and President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of Paulson & Co.
Paulson & Co.
Paulson & Co. Inc. is a hedge fund sponsor owned by its employees and founded in 1994 by John Paulson.-Overview:Paulson & Co. Inc. is an employee-owned, hedge fund headquartered in New York, New York...
, a New York-based hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
.
Paulson became a billionaire by short-selling subprime mortgages
Subprime lending
In finance, subprime lending means making loans to people who may have difficulty maintaining the repayment schedule...
in 2007, and made $3.5 billion that year. In 2010, he beat a hedge-fund record by making nearly $5 billion.
In 2011, he made bad trades in Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
, Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
and the fraud-suspected China-based Canadian-listed company; Sino-Forest Corporation
Sino-Forest Corporation
Sino-Forest Corporation claims to be one of the leading commercial forest plantation operators in the People's Republic of China.- History :...
. His flagship fund, Paulson Advantage Fund, was down over 40% as of September 2011. During that same time, Paulson had invested most of his personal fortune in gold
Gold as an investment
Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises...
and it had grown by $3.1 billion from September 2010 to September 2011.
Early life and education
Paulson was born in Queens, New York, the son of Alfredo Paulson, Chief Financial Officer at Ruder FinnRuder Finn
Ruder Finn is an United States public relations firm founded in 1948 by David Finn and William Ruder.Ruder Finn is a privately held, family-owned company that employs more than 600 people...
. Paulson attended school at the Whitestone Hebrew Centre in Whitestone
Whitestone, Queens
Whitestone is a residential neighborhood in the northernmost part of the City of New York borough of Queens. Located between the East River to the north and 25th Avenue to the south. Whitestone is surrounded by College Point, Flushing, Bayside, Auburndale, Linden Hill, and Murray Hill...
, New York.
He received his bachelor's degree in finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
from New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
's College of Business and Public Administration (now the New York University Stern School of Business
New York University Stern School of Business
The Leonard N. Stern School of Business is New York University's business school. It was established in 1900 as the NYU School of Commerce, Accounts and Finance. In 1988 it was named after Leonard N. Stern, an alumnus and benefactor of the school...
). He earned his MBA
Master of Business Administration
The Master of Business Administration is a :master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...
from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
.
Career
Paulson began his career at Boston Consulting GroupBoston Consulting Group
The Boston Consulting Group is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world. It is one of only three companies to appear in the top 15 of Fortunes "Best Companies to Work For" report for...
and then left to join Odyssey Partners where he worked with Leon Levy
Leon Levy
Leon Levy was, according to Forbes magazine, a "Wall Street investment genius and prolific philanthropist," who helped create both mutual funds and hedge funds. He co-founded the mutual fund manager Oppenheimer & Co. Inc. in 1959. There he started dozens of mutual funds that, at his death, had...
. Later he took a position in the mergers and acquisitions department at Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
followed by partner status at the mergers arbitrage firm Gruss Partners LP. In 1994, he founded his own hedge fund, Paulson & Co. with $2 million and one employee.
In 2008, Paulson co-wrote a Wall Street Journal op-ed piece suggesting an alternative to the Treasury Secretary's plan for stabilizing the markets. Later that year he began a new fund that lent money to investment banks and hedge funds during the mortgage crisis. Paulson "shot to fame and fortune" when his investment strategies paid off during the subprime housing market.
Personal
Paulson, his wife Jenny, and their two children live on the Upper East SideUpper East Side
The Upper East Side is a neighborhood in the borough of Manhattan in New York City, between Central Park and the East River. The Upper East Side lies within an area bounded by 59th Street to 96th Street, and the East River to Fifth Avenue-Central Park...
of New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. He also has homes in Southampton, New York
Southampton (village), New York
Southampton is a village in Suffolk County, New York, USA. The village is named after the Earl of Southampton. The Village of Southampton is in the southeast part of the county in the Town of Southampton...
and Aspen, Colorado
Aspen, Colorado
The City of Aspen is a Home Rule Municipality that is the county seat and the most populous city of Pitkin County, Colorado, United States. The United States Census Bureau estimates that the city population was 5,804 in 2005...
. John Paulson is unrelated to former U.S. Treasury Secretary Hank Paulson.
Paulson was ranked 39 on the 2011 Forbes list of the world's wealthiest people with a net worth of almost $16 billion. Between 2009 and 2011 Paulson made several charitable donations including, $15 million to the Center for Responsible Lending
Center for Responsible Lending
The Center for Responsible Lending is a nonprofit organization non-partisan research and policy group based in Durham, North Carolina and with offices in Washington DC and Oakland, Calif. Its purpose is to educate the public about financial products and to push for policies that curb predatory...
, $20 million to New York University Stern School of Business
New York University Stern School of Business
The Leonard N. Stern School of Business is New York University's business school. It was established in 1900 as the NYU School of Commerce, Accounts and Finance. In 1988 it was named after Leonard N. Stern, an alumnus and benefactor of the school...
, $15 million to build a children's hospital in Guayaquil
Guayaquil
Guayaquil , officially Santiago de Guayaquil , is the largest and the most populous city in Ecuador,with about 2.3 million inhabitants in the city and nearly 3.1 million in the metropolitan area, as well as that nation's main port...
, Ecuador
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
and £2.5 million to the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
for the John A Paulson Chair in European Political Economy. Paulson has contributed $140,000 to political candidates and parties since 2000, 45% of which went to Republicans, 16% to Democrats, and 36% to special interests. In 2011, employees of Paulson & Co. contributed at least $61,050 to the campaign for John Boehner
John Boehner
John Andrew Boehner is the 61st and current Speaker of the United States House of Representatives. A member of the Republican Party, he is the U.S. Representative from , serving since 1991...
.