Hedge fund manager John Paulson amassed a $5 billion (£3.15 billion) profit in 2010, which is understood to be the largest one year profit in fund manager history.
Paulson, through his Paulson and Co investment vehicle, famously made $4 billion out of the collapse of subprime mortgages in 2007. In 2010 he made about $1 billion from the fund’s 20% performance fee, with $4 billion coming from the gains made in his hedge funds, the Wall Street Journal reports.
By comparison, Wall Street’s most profitable investment bank Goldman Sach paid all of its 36,000 employees a total of $8.35 billion last year. (article continues below)
Paulson has largely benefited from taking a big position in gold, while at the end of last year he cut his large positions in American banks, namely the Bank of America, Citigroup and Wells Fargo.