In 2011, Paulson managed $38 billion, about half of which was his own fortune, thanks in part to a fortuitous wager on subprime mortgages. Since then, wrong-way bets on gold, U.S. banks and pharmaceutical shares have sent assets tumbling and customers fleeing. Paulson now manages around $9 billion, most of it is his own money.
Einhorn’s fund dropped 20.5 percent in 2015, and even with gains in the subsequent two years, he was still almost 13 percent away from his high-water mark at the end of 2017.
Spokesmen for Paulson and Einhorn declined to comment.
Cohen, Edelman
A few hedge fund billionaires have been able to replace money they took out of their funds. Cohen pulled out close to $3 billion from his Point72 Asset Management for taxes. But he also raised about $3 billion early this year after reopening to outside clients following a Securities and Exchange Commission ban. His prior firm, SAC Capital Advisors, plead guilty to securities fraud and paid a record fine in 2013. A Point72 spokesman declined to comment on the tax bill.
Joe Edelman, who runs the $3.7 billion biotech hedge fund Perceptive Advisors, raised about $500 million from clients so he could take out that amount to pay taxes, according to two investors. A spokesman for Perceptive declined to comment. The firm has posted annualized returns of about 30 percent since it started in 1999.
This article was provided by Bloomberg News.