Tue, Mar 31, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner