Fri, Apr 28, 2017
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: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob