Now he definitely can’t be called a one-hit wonder.
Billionaire John Paulson’s gold fund and short on European financials paid off big time this year.
According to a report in The Daily Mail, Paulson is set to take home around $1.2 billion this year, only about half as much as he made during his record-breaking year in 2008, ~$3.5 billion, when Paulson and one of his employees, Paolo Pellegrini, saw cracks in the subprime market and predicted a crash with their epic short.
$1.2 billion is no $3.5 billion, but come on, this is just awesome. What’s more, this was a year when the hedge funder was close to having his reputation torn to shreds and there were no generational swings like there were in 2008.
Here’s how he did it this year:
- Investing in gold, gold mining, and gold excavation companies (like Novagold) via his gold-only fund
- A $542 million bet against shares in Barclays, a $453 million against Royal Bank of Scotland and a $400 million against Lloyds TSB, netting a profit of as much as $430 million, according to the Daily Mail
- U.S. financials like CIT Group and Bank of America