Wed, Aug 24, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Four directors at Paulson Europe bag GBP50.8m ($81.4m) in 2009 after successfully betting on ailing UK banking sector

Friday, January 08, 2010
Opalesque Industry Updates - ‘Make hay while the sun doesn’t shine’ seems to be true for four directors at the Paulson European arm of US hedge fund run by billionaire investor John Paulson. They saw profits at the partnership rise 37% to £50.8m ($81.4m) in the year to March 2009 on the back of successful betting against the near-collapsed UK banking sector, The UK Telegraph reported citing UK regulatory documents.

The paper alsosaid yesterday that the lion’s share of this profit was taken by the US arm of the Paulson & Co, which received £28.6m ($45.8m). The remaining £22.2m ($35.57m) was shared among the three London-based directors – Nikolai Petchenikov, Harry St John Cooper and Mina Gerowin.

The UK banking sector, where institutions have been hit by government’s introduction of 50% tax on bonuses, this payout definitely seems to belittle many compensation packages.

Revenues at Paulson Europe, which employed just seven people as of last March, soared 41.7% to £57.4m ($92m), the Telegraph reported.

John Paulson doubled his wealth to $6bn in 2008 by betting against the real estate market and is now near $6.8 bn, according to the Business Insider. Now, he is a huge proponent of gold, and could become the richest man in the world if gold ends up rocketing higher as bulls expect. Mr. Paulson can earn juicy hedge fund performance fees off of the $30bn+ in AuM at his hedge fund. The Business Insider further said that Mr. Paulson would make money primarily on a giant speculative bet, and the majority of his wealth will be generated through high fees, not personal asset gains. - written by SC -


BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  4. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill