John Paulson: Difference between revisions

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| nationality  = American
| nationality  = American
| occupation  = Hedge fund manager, investor
| occupation  = Hedge fund manager, investor
| known_for    = Founder of [[Paulson & Co.]]; shorting the U.S. subprime mortgage market in 2007
| known_for    = Founder of [[Paulson & Co.]]; shorting subprime mortgage market in 2007
| education    = [[Harvard University]] ([[Master of Business Administration|MBA]])
| education    = [[Harvard University]] ([[Master of Business Administration|MBA]])
| children    = 3
| children    = 3
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}}
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John Alfred Paulson (born December 14, 1955) is an American billionaire hedge fund manager and the founder of Paulson & Co., a New York City–based investment management firm established in 1994. Paulson rose from relative obscurity in the financial world to international prominence in 2007, when he used credit default swaps to bet against the U.S. subprime mortgage lending market—a trade that earned him an estimated $4 billion personally and approximately $15 billion for his funds, transforming him, in the words of financial observers, "from an obscure money manager into a financial legend."<ref>{{cite web |title=John Paulson Profits in Downturn |url=http://www.portfolio.com/executives/features/2009/01/07/John-Paulson-Profits-in-Downturn |publisher=Portfolio.com |date=2009-01-07 |access-date=2026-02-24}}</ref> In 2010, he earned an additional $4.9 billion, making him one of the highest-earning hedge fund managers in history.<ref>{{cite web |title=Top 25 Hedge Fund Earners in 2010 |url=http://www.businessinsider.com/top-25-hedge-fund-earners-in-2010-rich-list-2011-4?op=1 |publisher=Business Insider |date=2011-04 |access-date=2026-02-24}}</ref> Beyond finance, Paulson has been a significant philanthropist, notably donating $100 million to New York's Central Park Conservancy in 2012, and has been active in American political life as a donor and economic adviser. Forbes estimated his net worth at $3.8 billion as of August 2025.<ref>{{cite news |last=Tucker |first=Hank |date=2025-10-07 |title=Billionaire Trump Donor Paulson Scores Windfall Thanks To Government's Investment In Trilogy Metals |url=https://www.forbes.com/sites/hanktucker/2025/10/07/billionaire-trump-donor-paulson-scores-windfall-thanks-to-governments-investment-in-trilogy-metals/ |work=Forbes |access-date=2026-02-24}}</ref>
John Alfred Paulson (born December 14, 1955) is an American billionaire hedge fund manager and the founder of Paulson & Co., a New York-based investment management firm established in 1994. He rose from relative obscurity in the financial world to international prominence in 2007, when he used credit default swaps to bet against the United States subprime mortgage lending market — a trade that earned him nearly $4 billion personally and generated approximately $15 billion in profits for his funds.<ref name="msn-20billion">{{cite web |title=Why John Paulson made $20 billion while America burned |url=https://www.msn.com/en-us/money/topstocks/why-john-paulson-made-20-billion-while-america-burned/vi-AA1V9WCE?ocid=finance-verthp-feeds |publisher=MSN |date=2026-02-20 |access-date=2026-02-24}}</ref> The trade, later dubbed "The Greatest Trade Ever" in a book of the same name by Gregory Zuckerman, transformed Paulson from what one account described as "an obscure money manager into a financial legend."<ref name="portfolio">{{cite web |title=John Paulson Profits in Downturn |url=http://www.portfolio.com/executives/features/2009/01/07/John-Paulson-Profits-in-Downturn |publisher=Portfolio.com |date=2009-01-07 |access-date=2026-02-24}}</ref> In 2010, Paulson earned $4.9 billion, making him one of the highest-earning hedge fund managers that year.<ref name="businessinsider">{{cite web |title=Top 25 Hedge Fund Earners in 2010 Rich List |url=http://www.businessinsider.com/top-25-hedge-fund-earners-in-2010-rich-list-2011-4?op=1 |publisher=Business Insider |date=2011-04 |access-date=2026-02-24}}</ref> Beyond finance, Paulson has been active in philanthropy and political life, serving as a prominent donor and adviser. He has been described as "one of the most prominent names in high finance."<ref name="nytimes-topics">{{cite web |title=John Paulson |url=http://topics.nytimes.com/top/reference/timestopics/people/p/john_paulson/index.html |publisher=The New York Times |access-date=2026-02-24}}</ref>


== Early Life ==
== Early Life ==


John Alfred Paulson was born on December 14, 1955, in New York City.<ref name="nydailynews">{{cite news |title=Queens-born John Paulson makes fortune on subprime |url=http://www.nydailynews.com/money/2008/01/16/2008-01-16_queensborn_john_paulson_makes_fortune_on.html |work=New York Daily News |date=2008-01-16 |access-date=2026-02-24}}</ref> He grew up in the borough of Queens, in a middle-class family. His father, Alfred G. Paulson, was a chief financial officer for a small industrial company.<ref>{{cite news |title=Paid Notice: Deaths — Paulson, Alfred G. |url=https://www.nytimes.com/2002/07/25/classified/paid-notice-deaths-paulson-alfred-g.html |work=The New York Times |date=2002-07-25 |access-date=2026-02-24}}</ref> The family had European roots, and Paulson was raised in an environment that emphasized education and professional achievement.<ref>{{cite web |title=Familia migrantes raíces europeas |url=http://www.eluniverso.com/2010/12/12/1/1447/familia-migrantes-raices-europeas.html |publisher=El Universo |date=2010-12-12 |access-date=2026-02-24}}</ref>
John Alfred Paulson was born on December 14, 1955, in the New York City borough of [[Queens]].<ref name="nydailynews">{{cite news |title=Queens-born John Paulson makes fortune on housing bust |url=http://www.nydailynews.com/money/2008/01/16/2008-01-16_queensborn_john_paulson_makes_fortune_on.html |work=New York Daily News |date=2008-01-16 |access-date=2026-02-24}}</ref> His father, Alfred G. Paulson, was of European descent. Alfred G. Paulson died in July 2002.<ref name="nyt-obituary">{{cite news |title=Paid Notice: Deaths — Paulson, Alfred G. |url=https://www.nytimes.com/2002/07/25/classified/paid-notice-deaths-paulson-alfred-g.html |work=The New York Times |date=2002-07-25 |access-date=2026-02-24}}</ref> Paulson grew up in Queens, a borough known for its middle-class and working-class neighborhoods, before pursuing higher education in business and finance. His upbringing in New York City would later inform his deep connections to the city's financial industry.
 
Growing up in Queens, Paulson attended local public schools. From an early age, he demonstrated an aptitude for numbers and business. His upbringing in one of New York City's outer boroughs—far from the elite circles of Manhattan finance—would later become a notable element of his personal narrative, as journalists and biographers contrasted his modest origins with the enormous wealth he would accumulate through his career in hedge fund management.<ref name="nydailynews" />


== Education ==
== Education ==


Paulson attended [[New York University]] (NYU), where he earned a bachelor's degree. He graduated first in his class from NYU's College of Business and Public Administration (now the Stern School of Business).<ref>{{cite web |title=NYU Stern Newsroom — John Paulson |url=http://www.stern.nyu.edu/Newsroom/NewsReleases/CON_021921 |publisher=New York University Stern School of Business |access-date=2026-02-24}}</ref> His outstanding academic performance at NYU earned him recognition and laid the groundwork for his admission to one of the country's most prestigious graduate programs.
Paulson attended [[New York University]], where he earned a Bachelor of Arts degree. He subsequently attended [[Harvard Business School]], where he earned a [[Master of Business Administration]] (MBA).<ref name="stern-nyu">{{cite web |title=NYU Stern Newsroom |url=http://www.stern.nyu.edu/Newsroom/NewsReleases/CON_021921 |publisher=New York University Stern School of Business |access-date=2026-02-24}}</ref> His academic background at two of the most recognized institutions in business education provided the foundation for his career in investment management. Paulson maintained ties to NYU throughout his career, becoming a major donor to the university and serving as a board member of the NYU Stern School of Business.<ref name="nyu-news">{{cite news |title=NYU megadonor John Paulson under fire for Epstein 'black book' listing |url=https://nyunews.com/news/2025/09/11/john-paulson-epstein-list/ |work=Washington Square News |date=2025-09-11 |access-date=2026-02-24}}</ref>
 
Paulson subsequently enrolled at [[Harvard Business School]], where he earned his [[Master of Business Administration]] (MBA). He graduated from Harvard as a [[Baker Scholar]], a distinction reserved for the top five percent of the graduating class.<ref>{{cite web |title=Fund Lessons from John Paulson |url=http://www.thestreet.com/story/10619113/fund-lessons-from-john-paulson.html |publisher=TheStreet |access-date=2026-02-24}}</ref> His education at both NYU and Harvard provided him with the analytical framework and professional network that would prove instrumental in his subsequent career in investment management.


== Career ==
== Career ==
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=== Early Career and Founding of Paulson & Co. ===
=== Early Career and Founding of Paulson & Co. ===


After completing his MBA at Harvard Business School, Paulson worked in investment banking and at several investment firms, gaining experience in mergers and acquisitions as well as risk arbitrage—a specialty involving the analysis of corporate transactions such as mergers, acquisitions, and restructurings to identify pricing inefficiencies.<ref>{{cite web |title=John Paulson — Face to Face |url=http://www.pionline.com/apps/pbcs.dll/article?AID=/20070709/FACETOFACE/70705017/1021/TOC |publisher=Pensions & Investments |date=2007-07-09 |access-date=2026-02-24}}</ref>
Before founding his own firm, Paulson worked in various roles within the financial industry, gaining experience in mergers and acquisitions and investment management. In 1994, he established Paulson & Co., a New York-based investment management firm. In its early years, the firm focused on merger arbitrage — a strategy involving the buying and selling of stocks of companies involved in mergers and acquisitions to profit from price discrepancies.<ref name="pionline">{{cite web |title=Face to Face: John Paulson |url=http://www.pionline.com/apps/pbcs.dll/article?AID=/20070709/FACETOFACE/70705017/1021/TOC |publisher=Pensions & Investments |date=2007-07-09 |access-date=2026-02-24}}</ref> For over a decade, Paulson & Co. operated as a relatively small and lesser-known hedge fund, managing modest sums compared to the industry's largest players.<ref name="thestreet">{{cite web |title=Fund Lessons from John Paulson |url=http://www.thestreet.com/story/10619113/fund-lessons-from-john-paulson.html |publisher=TheStreet |access-date=2026-02-24}}</ref>
 
In 1994, Paulson founded Paulson & Co., a New York–based investment management firm specializing in merger arbitrage and event-driven strategies. The firm started modestly, managing a relatively small pool of capital compared to the larger established hedge funds of the era. Through the mid-to-late 1990s and into the early 2000s, Paulson steadily grew the firm's assets under management by delivering consistent returns to investors, though he remained largely unknown outside the professional hedge fund community.<ref name="portfolio">{{cite web |title=John Paulson Profits in Downturn |url=http://www.portfolio.com/executives/features/2009/01/07/John-Paulson-Profits-in-Downturn |publisher=Portfolio.com |date=2009-01-07 |access-date=2026-02-24}}</ref>


=== The Subprime Mortgage Trade (2005–2008) ===
=== The Subprime Mortgage Trade (2005–2008) ===


Paulson's defining career achievement came through his analysis of the U.S. housing market in the mid-2000s. Beginning around 2005, Paulson and his team at Paulson & Co. grew increasingly concerned about the rapid expansion of subprime mortgage lending and the proliferation of mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) built upon pools of risky home loans. At the time, the prevailing consensus on Wall Street and among credit rating agencies was that the U.S. housing market was fundamentally sound and that widespread defaults were unlikely.<ref>{{cite news |title=Why John Paulson made $20 billion while America burned |url=https://www.msn.com/en-us/money/topstocks/why-john-paulson-made-20-billion-while-america-burned/vi-AA1V9WCE?ocid=finance-verthp-feeds |work=MSN |access-date=2026-02-24}}</ref>
Paulson's career-defining moment came in the mid-2000s, when he identified what he believed to be a massive bubble in the United States housing market. In 2005, while Wall Street broadly maintained confidence that housing prices could not experience a nationwide decline, Paulson began studying the subprime mortgage market closely. Ratings agencies at the time dismissed the possibility of widespread defaults, and banks continued to generate large profits from mortgage-backed securities.<ref name="msn-20billion"/>


Paulson reached a different conclusion. He and his analysts identified what they believed to be systemic weaknesses in the subprime mortgage market, including deteriorating lending standards, the growing prevalence of adjustable-rate mortgages issued to borrowers with poor credit histories, and the overvaluation of mortgage-backed securities by rating agencies. To act on this thesis, Paulson created two dedicated funds—the Paulson Credit Opportunities Funds—designed to profit from a collapse in subprime mortgage values.<ref name="portfolio" />
Paulson devised a strategy to profit from the anticipated collapse by purchasing [[credit default swaps]] — financial instruments that function essentially as insurance contracts against the default of debt securities. By buying credit default swaps on pools of subprime mortgages, Paulson was effectively betting that these mortgages would fail. In 2006, he launched two dedicated funds to execute this strategy: the Paulson Credit Opportunities Fund and the Paulson Credit Opportunities Fund II.


The primary instrument Paulson used to execute the trade was the [[credit default swap]] (CDS), essentially an insurance contract that pays out when a referenced bond or security defaults. By purchasing credit default swaps on mortgage-backed securities and CDOs that he believed were likely to fail, Paulson constructed a massive short position against the subprime mortgage market. The cost of these credit default swaps was relatively low at the time, as most market participants did not anticipate widespread defaults.<ref>{{cite news |title=Why John Paulson made $20 billion while America burned |url=https://www.msn.com/en-us/money/topstocks/why-john-paulson-made-20-billion-while-america-burned/vi-AA1V9WCE?ocid=finance-verthp-feeds |work=MSN |access-date=2026-02-24}}</ref>
When the housing market began to deteriorate in 2007 and subprime mortgage defaults surged, Paulson's positions generated extraordinary returns. His funds earned approximately $15 billion in profits from the trade, and Paulson personally earned nearly $4 billion that year alone.<ref name="msn-20billion"/> The scale of the profits was unprecedented in the hedge fund industry. The trade transformed Paulson, as one account described, "from an obscure money manager into a financial legend."<ref name="portfolio"/>


When the subprime mortgage market began to deteriorate in 2007 and subsequently collapsed during the broader financial crisis of 2007–2008, Paulson's funds reaped enormous profits. The Paulson Credit Opportunities Fund reportedly returned approximately 590 percent in 2007. Paulson's personal earnings for the year were estimated at nearly $4 billion, and his funds generated approximately $15 billion in total profits from the trade.<ref name="portfolio" /> The scale of the gains made Paulson one of the highest-earning individuals in the history of finance for a single year and drew comparisons to George Soros's famous 1992 bet against the British pound.
The trade attracted intense media scrutiny and public interest. It was later chronicled in detail by ''Wall Street Journal'' reporter Gregory Zuckerman in the 2009 book ''The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History''. The book described how Paulson and his team identified the vulnerability of the subprime market and executed their strategy despite skepticism from much of the financial establishment.


The trade catapulted Paulson from relative anonymity to the upper echelon of the hedge fund industry. Financial journalist Gregory Zuckerman later chronicled the trade in detail in his book ''The Greatest Trade Ever'' (2009), cementing the episode's place in financial history.
Paulson's trade also became a subject of regulatory controversy. In 2010, the [[U.S. Securities and Exchange Commission]] filed a civil fraud lawsuit against [[Goldman Sachs]] related to Abacus 2007-AC1, a synthetic [[collateralized debt obligation]] (CDO) that Goldman had structured and marketed. The SEC alleged that Goldman had allowed Paulson & Co. to influence the selection of mortgage securities included in the CDO without disclosing to investors that Paulson intended to bet against the instrument. Goldman Sachs settled the case for $550 million. Paulson & Co. was not named as a defendant in the case.


=== Post-Crisis Investments and Gold ===
=== Post-Crisis Investments and Performance ===


Following the success of his subprime trade, Paulson & Co.'s assets under management grew substantially, reportedly reaching over $30 billion at its peak. Paulson subsequently made several large-scale investment bets in the years following the financial crisis.
Following his success with the subprime trade, Paulson became one of the most closely watched investors on Wall Street. His assets under management grew substantially as investors sought to participate in his future trades. In 2010, Paulson earned $4.9 billion, again ranking among the highest-earning hedge fund managers in the world.<ref name="businessinsider"/>


One of the most prominent was Paulson's significant investment in gold and gold-related assets. In 2009 and 2010, Paulson established a gold-denominated share class for his funds and took large positions in gold mining companies and gold exchange-traded funds. The rationale behind this investment was Paulson's belief that the massive monetary stimulus programs undertaken by central banks in response to the financial crisis would ultimately lead to significant inflation and a devaluation of paper currencies, driving up the price of gold. This bet proved profitable in the short term as gold prices rose to record highs in 2011.<ref>{{cite web |title=Top 25 Hedge Fund Earners in 2010 |url=http://www.businessinsider.com/top-25-hedge-fund-earners-in-2010-rich-list-2011-4?op=1 |publisher=Business Insider |date=2011-04 |access-date=2026-02-24}}</ref>
However, Paulson's post-crisis investment record was more mixed. He made large bets on gold, establishing a dedicated gold fund, and invested heavily in several individual companies across various sectors. Some of these investments generated significant losses. Paulson's gold fund suffered steep declines in years when gold prices fell, and several of his equity positions underperformed.


In 2010, Paulson earned approximately $4.9 billion in personal compensation, making him the highest-earning hedge fund manager that year.<ref>{{cite web |title=Top 25 Hedge Fund Earners in 2010 |url=http://www.businessinsider.com/top-25-hedge-fund-earners-in-2010-rich-list-2011-4?op=1 |publisher=Business Insider |date=2011-04 |access-date=2026-02-24}}</ref>
Despite these setbacks, Paulson & Co. continued to manage billions of dollars in assets and remained an active participant in the market. In the 2020s, Paulson's 13F filings with the SEC continued to draw attention from market analysts and financial media. In the third quarter of 2025, the firm made a significant increase in its position in Bausch Health Companies Inc.<ref name="yahoo-bausch">{{cite news |title=John Paulson's Strategic Move: Significant Increase in Bausch Health Companies Inc. |url=https://finance.yahoo.com/news/john-paulsons-strategic-move-significant-220546593.html |work=Yahoo Finance |date=2025-11-14 |access-date=2026-02-24}}</ref> In the fourth quarter of 2025, filings showed changes in the firm's position in Madrigal Pharmaceuticals Inc.<ref name="yahoo-madrigal">{{cite news |title=John Paulson's Strategic Moves: Madrigal Pharmaceuticals Inc. Sees a -3.09% Impact |url=https://finance.yahoo.com/news/john-paulsons-strategic-moves-madrigal-230802010.html |work=Yahoo Finance |date=2026-02-18 |access-date=2026-02-24}}</ref>


However, some of Paulson's subsequent investments did not replicate the success of his subprime trade. Several of his post-crisis bets experienced significant losses in subsequent years, and the firm's assets under management declined from their peak levels. Paulson & Co. continued to operate as an investment management firm, employing event-driven and value-oriented strategies across a range of sectors.
=== Mining and Industrial Investments ===


=== Transition to Family Office ===
Paulson also established positions in the mining and natural resources sector. In October 2025, one of his investment positions — a stake in Trilogy Metals, a small mining company — generated a significant windfall after the company's share price tripled following news of a government investment in the firm.<ref name="forbes-trilogy">{{cite news |last=Tucker |first=Hank |title=Billionaire Trump Donor Paulson Scores Windfall Thanks To Government's Investment In Trilogy Metals |url=https://www.forbes.com/sites/hanktucker/2025/10/07/billionaire-trump-donor-paulson-scores-windfall-thanks-to-governments-investment-in-trilogy-metals/ |work=Forbes |date=2025-10-07 |access-date=2026-02-24}}</ref>


In recent years, Paulson & Co. has transitioned from a traditional hedge fund to operating more as a family office, managing primarily Paulson's personal and family wealth. Despite this shift, Paulson has continued to make notable investments across multiple sectors. Public filings in late 2025 showed Paulson making strategic adjustments to his portfolio, including significant positions in pharmaceutical companies such as Bausch Health Companies and Madrigal Pharmaceuticals.<ref>{{cite news |title=John Paulson's Strategic Move: Significant Increase in Bausch Health Companies Inc. |url=https://finance.yahoo.com/news/john-paulsons-strategic-move-significant-220546593.html |work=Yahoo Finance |date=2025-11-14 |access-date=2026-02-24}}</ref><ref>{{cite news |title=John Paulson's Strategic Moves: Madrigal Pharmaceuticals Inc. Sees a -3.09% Impact |url=https://finance.yahoo.com/news/john-paulsons-strategic-moves-madrigal-230802010.html |work=Yahoo Finance |date=2026-02-18 |access-date=2026-02-24}}</ref>
Paulson's industrial interests have also drawn public scrutiny. In February 2026, workers at a Conn-Selmer musical instrument factory in Ohio criticized Paulson after learning of plans to close the plant and move production to China. The criticism was notable given Paulson's public advocacy for domestic manufacturing and his support for trade policies aimed at reducing offshoring. ''The Guardian'' reported that workers decried the plan after Paulson had "painted himself as advocate for domestic manufacturing."<ref name="guardian-ohio">{{cite news |title=Trump donor who criticized offshoring to close Ohio plant and move work to China |url=https://www.theguardian.com/business/2026/feb/16/john-paulson-conn-selmer-ohio-factory-china-trump |work=The Guardian |date=2026-02-16 |access-date=2026-02-24}}</ref>


Paulson has also held investments in the mining sector. In October 2025, Forbes reported that Paulson held a stake in Trilogy Metals, a small mining company whose share price tripled after news of a government investment, resulting in a significant financial windfall for Paulson.<ref>{{cite news |last=Tucker |first=Hank |date=2025-10-07 |title=Billionaire Trump Donor Paulson Scores Windfall Thanks To Government's Investment In Trilogy Metals |url=https://www.forbes.com/sites/hanktucker/2025/10/07/billionaire-trump-donor-paulson-scores-windfall-thanks-to-governments-investment-in-trilogy-metals/ |work=Forbes |access-date=2026-02-24}}</ref>
=== Political Activity and Advisory Roles ===


=== Political Involvement ===
Paulson has been a significant political donor, primarily to Republican candidates and causes. His political contributions have been tracked by various outlets over the years.<ref name="newsmeat">{{cite web |title=John Paulson Political Donations |url=https://web.archive.org/web/20131009224946/http://www.newsmeat.com/billionaire_political_donations/John_Paulson.php |publisher=Newsmeat |access-date=2026-02-24}}</ref>


Paulson has been active in American political life, primarily as a donor and adviser aligned with the Republican Party.<ref>{{cite web |title=Billionaire Political Donations: John Paulson |url=https://web.archive.org/web/20131009224946/http://www.newsmeat.com/billionaire_political_donations/John_Paulson.php |publisher=Newsmeat |access-date=2026-02-24}}</ref>
Paulson was an early and prominent supporter of [[Donald Trump]]'s political activities. In August 2016, he was named as a member of Trump's economic advisory team during the presidential campaign. ''The Washington Post'' identified Paulson among a group of ultra-wealthy individuals assembled to advise Trump on economic policy.<ref name="wapo-trump">{{cite news |title=Donald Trump's economic team: The ultra rich to the rescue |url=https://www.washingtonpost.com/news/wonk/wp/2016/08/05/donald-trumps-economic-team-the-ultra-rich-to-the-rescue/ |work=The Washington Post |date=2016-08-05 |access-date=2026-02-24}}</ref><ref name="valuewalk-trump">{{cite web |title=Trump John Paulson |url=http://www.valuewalk.com/2016/08/trump-john-paulson/ |publisher=ValueWalk |date=2016-08 |access-date=2026-02-24}}</ref>


Paulson was one of the earliest prominent Wall Street figures to support [[Donald Trump]]'s political campaigns. In 2016, he was named to Trump's economic advisory team, joining a group of wealthy businessmen assembled to advise the campaign on economic policy.<ref>{{cite news |title=Donald Trump's economic team: The ultra-rich to the rescue |url=https://www.washingtonpost.com/news/wonk/wp/2016/08/05/donald-trumps-economic-team-the-ultra-rich-to-the-rescue/ |work=The Washington Post |date=2016-08-05 |access-date=2026-02-24}}</ref> Bloomberg News reported in November 2016 that Paulson's early support for Trump represented a strategic bet that yielded both political influence and potential financial benefits.<ref>{{cite news |title=Paulson's Big Long: A Bet on Trump Yields Power and Profit |url=https://www.bloomberg.com/news/articles/2016-11-21/paulson-s-big-long-a-bet-on-trump-yields-power-and-profit |work=Bloomberg News |date=2016-11-21 |access-date=2026-02-24}}</ref> ''Vanity Fair'' reported that Paulson's close relationship with the incoming Trump administration positioned him to have influence over economic and financial policy decisions.<ref>{{cite news |title=John Paulson Trump Favor to Ask |url=http://www.vanityfair.com/news/2016/11/john-paulson-trump-favor-to-ask |work=Vanity Fair |date=2016-11 |access-date=2026-02-24}}</ref>
Following Trump's election in November 2016, ''Bloomberg'' reported that Paulson's early support for Trump positioned him for potential influence and profit. The outlet described the political connection as "Paulson's Big Long," drawing an analogy to his famous short trade, characterizing his early backing of Trump as a calculated bet that yielded "power and profit."<ref name="bloomberg-trump">{{cite news |title=Paulson's Big Long: A Bet on Trump Yields Power and Profit |url=https://www.bloomberg.com/news/articles/2016-11-21/paulson-s-big-long-a-bet-on-trump-yields-power-and-profit |work=Bloomberg |date=2016-11-21 |access-date=2026-02-24}}</ref> ''Vanity Fair'' also reported that Paulson had cultivated a close relationship with Trump and was positioned to seek favorable policy outcomes.<ref name="vanityfair-trump">{{cite news |title=John Paulson Trump Favor to Ask |url=http://www.vanityfair.com/news/2016/11/john-paulson-trump-favor-to-ask |work=Vanity Fair |date=2016-11 |access-date=2026-02-24}}</ref>


Paulson's political associations have at times drawn scrutiny. In February 2026, ''The Guardian'' reported that Paulson, who had publicly presented himself as an advocate for domestic manufacturing, was planning to close a factory operated by Conn-Selmer in Ohio and move production to China. Workers at the plant criticized the decision, noting the contradiction between Paulson's public statements about onshoring and the company's actions.<ref>{{cite news |title=Trump donor who criticized offshoring to close Ohio plant and move work to China |url=https://www.theguardian.com/business/2026/feb/16/john-paulson-conn-selmer-ohio-factory-china-trump |work=The Guardian |date=2026-02-16 |access-date=2026-02-24}}</ref>
Forbes identified Paulson as "one of Donald Trump's earliest supporters on Wall Street" in its October 2025 reporting on the Trilogy Metals windfall.<ref name="forbes-trilogy"/>


== Personal Life ==
== Personal Life ==


Paulson has three children.<ref>{{cite web |title=Jenny Paulson wealthiest Romanian woman in the world |url=https://web.archive.org/web/20120702175339/http://www.bucharestherald.com/dailyevents/41-dailyevents/27896-jenny-paulson-wealthiest-romanian-woman-in-the-world-her-wealth-stands-at-7-billion-dollars |publisher=Bucharest Herald |access-date=2026-02-24}}</ref>
Paulson resides in New York City. He has owned a townhouse at 9 East 86th Street on the Upper East Side of Manhattan, a property that has been noted in real estate and architectural coverage of the city.<ref name="townhouse">{{cite web |title=9 East 86th Street — John Paulson Townhouse |url=http://brickandcornice.com/9-east-86th-street-john-paulson-townhouse/ |publisher=Brick and Cornice |access-date=2026-02-24}}</ref>


Paulson has resided in New York City for most of his adult life. He has owned a townhouse at 9 East 86th Street on Manhattan's Upper East Side, one of the most prominent residential properties in the city.<ref>{{cite web |title=9 East 86th Street — John Paulson Townhouse |url=http://brickandcornice.com/9-east-86th-street-john-paulson-townhouse/ |publisher=Brick and Cornice |access-date=2026-02-24}}</ref>
Paulson has three children. His former wife, Jenny Paulson, is of Romanian descent. The ''Bucharest Herald'' described Jenny Paulson as one of the wealthiest Romanian-born women in the world, noting her connection to the Paulson family fortune, which was estimated at approximately $7 billion at the time of reporting.<ref name="bucharest-herald">{{cite web |title=Jenny Paulson: Wealthiest Romanian Woman in the World |url=https://web.archive.org/web/20120702175339/http://www.bucharestherald.com/dailyevents/41-dailyevents/27896-jenny-paulson-wealthiest-romanian-woman-in-the-world-her-wealth-stands-at-7-billion-dollars |publisher=Bucharest Herald |access-date=2026-02-24}}</ref>


In September 2025, ''Washington Square News'', NYU's student newspaper, reported that Paulson's name had appeared in [[Jeffrey Epstein]]'s contact list, which had become public. The report noted that Paulson was a major NYU donor and a member of the Stern School of Business board. The listing in the contact book did not, by itself, imply any wrongdoing.<ref>{{cite news |title=NYU megadonor John Paulson under fire for Epstein 'black book' listing |url=https://nyunews.com/news/2025/09/11/john-paulson-epstein-list/ |work=Washington Square News |date=2025-09-11 |access-date=2026-02-24}}</ref>
In September 2025, Paulson's name appeared in coverage related to [[Jeffrey Epstein]]'s contact list. ''Washington Square News'', NYU's student newspaper, reported that Paulson was identified as "one of the billionaires" listed in Epstein's so-called "black book." The report noted Paulson's position as a major NYU donor and Stern School of Business board member.<ref name="nyu-news"/> Appearing in Epstein's contact list does not imply involvement in illegal activity; the contacts included a broad range of public figures.


== Philanthropy ==
== Philanthropy ==


Paulson has been a significant philanthropist, directing donations to educational institutions, conservation efforts, and cultural causes.
Paulson has engaged in significant philanthropic activity, directing substantial donations to educational institutions and public spaces.
 
=== Central Park Conservancy ===
 
In October 2012, Paulson donated $100 million to the [[Central Park Conservancy]], the nonprofit organization that manages Central Park in Manhattan. The donation was one of the largest gifts ever made to a New York City park. ''The New York Times'' reported the gift as a major contribution to the maintenance and preservation of the iconic public space.<ref name="nyt-centralpark">{{cite news |title=Billionaire Donates $100 Million to Central Park |url=https://www.nytimes.com/2012/10/24/nyregion/billionaire-donates-100-million-to-central-park.html |work=The New York Times |date=2012-10-24 |access-date=2026-02-24}}</ref>
 
=== New York University ===


In October 2012, Paulson made a $100 million donation to the [[Central Park Conservancy]], the nonprofit organization that manages Central Park in New York City. At the time, it was the largest single donation in the Conservancy's history and one of the largest gifts ever made to a public park. The donation was intended to support the park's ongoing maintenance and improvement.<ref>{{cite news |title=Billionaire Donates $100 Million to Central Park |url=https://www.nytimes.com/2012/10/24/nyregion/billionaire-donates-100-million-to-central-park.html |work=The New York Times |date=2012-10-24 |access-date=2026-02-24}}</ref>
Paulson has been a major donor to New York University, his undergraduate alma mater. He has served on the board of the NYU Stern School of Business and has contributed significant funds to the university. His position as one of NYU's most prominent donors has been the subject of media attention.<ref name="nyu-news"/><ref name="stern-nyu"/>


Paulson has also been a major donor to his alma mater, New York University, particularly to the Stern School of Business, where he has served on the board.<ref>{{cite news |title=NYU megadonor John Paulson under fire for Epstein 'black book' listing |url=https://nyunews.com/news/2025/09/11/john-paulson-epstein-list/ |work=Washington Square News |date=2025-09-11 |access-date=2026-02-24}}</ref>
=== Hebrew University of Jerusalem ===


Through the Paulson Foundation, his family's charitable organization, Paulson has directed funding to international educational institutions. In early 2026, ''eJewish Philanthropy'' reported that the Paulson Foundation had made an additional donation to the [[Hebrew University of Jerusalem]] for STEM programs at the university's Givat Ram campus, bringing the foundation's total contributions to the institution to $46 million—one of the largest donations in the university's history.<ref>{{cite news |title=Paulson Foundation makes additional donation to Hebrew University for STEM, bringing total to $46M |url=https://ejewishphilanthropy.com/paulson-foundation-makes-additional-donation-to-hebrew-university-for-stem-bringing-total-to-46m/ |work=eJewishPhilanthropy |date=2026-01 |access-date=2026-02-24}}</ref>
Through the Paulson Foundation, Paulson and his family have made substantial donations to the [[Hebrew University of Jerusalem]] for STEM (science, technology, engineering, and mathematics) programs. As of early 2026, the Paulson Foundation's cumulative donations to the university totaled $46 million, representing one of the institution's largest-ever gifts. The funds were directed toward programs at the university's Givat Ram campus.<ref name="hebrew-university">{{cite news |title=Paulson Foundation makes additional donation to Hebrew University for STEM, bringing total to $46M |url=https://ejewishphilanthropy.com/paulson-foundation-makes-additional-donation-to-hebrew-university-for-stem-bringing-total-to-46m/ |work=eJewishPhilanthropy |date=2026-01 |access-date=2026-02-24}}</ref>


== Recognition ==
== Recognition ==


Paulson has been described as "one of the most prominent names in high finance."<ref>{{cite web |title=John Paulson — Times Topics |url=http://topics.nytimes.com/top/reference/timestopics/people/p/john_paulson/index.html |publisher=The New York Times |access-date=2026-02-24}}</ref> His 2007 short against the subprime mortgage market is considered one of the most profitable trades in the history of Wall Street, and it was the subject of extensive media coverage and the book ''The Greatest Trade Ever'' by Gregory Zuckerman, published in 2009.
Paulson's 2007 trade against the subprime mortgage market is considered one of the most profitable trades in financial history. The trade was the subject of Gregory Zuckerman's 2009 book ''The Greatest Trade Ever'', which provided a detailed account of how Paulson identified the housing bubble and executed his strategy. The book brought wide public awareness to Paulson's role in the financial crisis era.
 
His academic achievements include graduating first in his class from NYU's business school and earning the distinction of Baker Scholar at Harvard Business School, placing him in the top five percent of his graduating class.<ref>{{cite web |title=Fund Lessons from John Paulson |url=http://www.thestreet.com/story/10619113/fund-lessons-from-john-paulson.html |publisher=TheStreet |access-date=2026-02-24}}</ref>


Paulson's $100 million gift to the Central Park Conservancy was one of the largest charitable donations to a public park in U.S. history and generated significant media attention when it was announced in 2012.<ref>{{cite news |title=Billionaire Donates $100 Million to Central Park |url=https://www.nytimes.com/2012/10/24/nyregion/billionaire-donates-100-million-to-central-park.html |work=The New York Times |date=2012-10-24 |access-date=2026-02-24}}</ref>
Paulson has consistently appeared on ''Forbes'' lists of the wealthiest Americans and the world's billionaires. As of August 2025, ''Forbes'' estimated his net worth at approximately $3.8 billion. He has been named among the top-earning hedge fund managers in multiple years, most notably in 2007, when he earned nearly $4 billion, and in 2010, when he earned $4.9 billion.<ref name="businessinsider"/>


Forbes has consistently listed Paulson among the wealthiest individuals in the United States, estimating his net worth at $3.8 billion as of August 2025.<ref>{{cite news |last=Tucker |first=Hank |date=2025-10-07 |title=Billionaire Trump Donor Paulson Scores Windfall Thanks To Government's Investment In Trilogy Metals |url=https://www.forbes.com/sites/hanktucker/2025/10/07/billionaire-trump-donor-paulson-scores-windfall-thanks-to-governments-investment-in-trilogy-metals/ |work=Forbes |access-date=2026-02-24}}</ref>
His investment strategies and portfolio moves continue to be closely tracked by financial analysts and media outlets, with his firm's quarterly 13F filings regularly generating coverage in outlets such as ''Yahoo Finance'', ''Insider Monkey'', and other financial publications.<ref name="yahoo-madrigal"/><ref name="yahoo-bausch"/><ref>{{cite web |title=Hedge Fund and Insider Trading News: Rob Citrone, John Paulson, Bill Ackman, Ray Dalio, David Tepper... |url=https://www.insidermonkey.com/blog/hedge-fund-and-insider-trading-news-rob-citrone-john-paulson-bill-ackman-ray-dalio-david-tepper-third-point-jana-partners-balyasny-asset-management-waste-management-inc-wm-and-more-1697708/ |publisher=Insider Monkey |date=2026-02-18 |access-date=2026-02-24}}</ref>


== Legacy ==
== Legacy ==


John Paulson's place in financial history rests primarily on his 2007 trade against the U.S. subprime mortgage market. The trade, which generated approximately $15 billion in profits for his funds and nearly $4 billion for Paulson personally, is among the most profitable single investment theses ever executed. It demonstrated the potential for contrarian analysis to generate extraordinary returns and highlighted the systemic risks that had accumulated in the U.S. mortgage market in the years preceding the 2007–2008 financial crisis.<ref name="portfolio" /><ref>{{cite news |title=Why John Paulson made $20 billion while America burned |url=https://www.msn.com/en-us/money/topstocks/why-john-paulson-made-20-billion-while-america-burned/vi-AA1V9WCE?ocid=finance-verthp-feeds |work=MSN |access-date=2026-02-24}}</ref>
Paulson's place in financial history rests primarily on his 2007 subprime mortgage trade, which remains a defining event in the annals of hedge fund investing. The trade demonstrated both the potential profits available to investors who correctly identified systemic risks in financial markets and the role that complex financial instruments such as credit default swaps played in the 2007–2008 financial crisis. His success contributed to broader public debates about the structure of financial markets, the role of hedge funds, and the ethics of profiting from economic downturns that caused widespread harm to homeowners and the broader economy.
 
The trade also raised broader questions about the role of hedge funds and financial derivatives in the global financial system. While Paulson's analysis of the subprime market's weaknesses proved prescient, the instruments he used—credit default swaps—were themselves part of the complex web of financial products whose opacity and interconnectedness contributed to the severity of the financial crisis. The episode became a case study in business schools and a reference point in debates about financial regulation, market structure, and the ethics of profiting from economic distress.


Beyond the subprime trade, Paulson's career illustrates both the opportunities and challenges of hedge fund management. His post-crisis investments in gold and other assets demonstrated the difficulty of replicating a singular success, while his transition from managing outside capital to operating a family office reflected broader trends in the hedge fund industry.
As a philanthropist, Paulson's $100 million donation to Central Park and his multi-million-dollar contributions to NYU and the Hebrew University of Jerusalem placed him among New York City's most significant individual donors to public and educational institutions.


Paulson's philanthropic activity, including his landmark donation to Central Park and his ongoing support for educational institutions, has also formed part of his public legacy, placing him within a tradition of prominent financiers who have directed substantial portions of their wealth toward charitable causes.
His political involvement — particularly his early support for Donald Trump and his role on Trump's economic advisory team — positioned him as one of the most politically active figures in the hedge fund industry. The intersection of his financial interests, political activity, and public advocacy on issues such as domestic manufacturing has continued to generate scrutiny, as illustrated by the 2026 controversy over the closure of the Ohio Conn-Selmer plant.<ref name="guardian-ohio"/>


His political involvement, particularly his early and sustained support for Donald Trump, positioned him as one of the most prominent Wall Street figures in Republican political circles during the late 2010s and 2020s.<ref>{{cite news |title=Paulson's Big Long: A Bet on Trump Yields Power and Profit |url=https://www.bloomberg.com/news/articles/2016-11-21/paulson-s-big-long-a-bet-on-trump-yields-power-and-profit |work=Bloomberg News |date=2016-11-21 |access-date=2026-02-24}}</ref>
Paulson & Co. has remained active in the investment management industry, though the firm's assets under management have declined from their peak. Paulson's career trajectory — from a modest merger-arbitrage fund manager to one of the wealthiest and most prominent investors of his generation — is frequently cited in discussions of the hedge fund industry and the role of individual investors in global financial markets.


== References ==
== References ==
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[[Category:New York University alumni]]
[[Category:New York University alumni]]
[[Category:Harvard Business School alumni]]
[[Category:Harvard Business School alumni]]
[[Category:American hedge fund managers]]
[[Category:Hedge fund managers]]
[[Category:American billionaires]]
[[Category:American billionaires]]
[[Category:American philanthropists]]
[[Category:American philanthropists]]

Latest revision as of 07:10, 24 February 2026



John Paulson
BornJohn Alfred Paulson
14 12, 1955
BirthplaceNew York City, U.S.
NationalityAmerican
OccupationHedge fund manager, investor
Known forFounder of Paulson & Co.; shorting subprime mortgage market in 2007
EducationHarvard University (MBA)
Children3

John Alfred Paulson (born December 14, 1955) is an American billionaire hedge fund manager and the founder of Paulson & Co., a New York-based investment management firm established in 1994. He rose from relative obscurity in the financial world to international prominence in 2007, when he used credit default swaps to bet against the United States subprime mortgage lending market — a trade that earned him nearly $4 billion personally and generated approximately $15 billion in profits for his funds.[1] The trade, later dubbed "The Greatest Trade Ever" in a book of the same name by Gregory Zuckerman, transformed Paulson from what one account described as "an obscure money manager into a financial legend."[2] In 2010, Paulson earned $4.9 billion, making him one of the highest-earning hedge fund managers that year.[3] Beyond finance, Paulson has been active in philanthropy and political life, serving as a prominent donor and adviser. He has been described as "one of the most prominent names in high finance."[4]

Early Life

John Alfred Paulson was born on December 14, 1955, in the New York City borough of Queens.[5] His father, Alfred G. Paulson, was of European descent. Alfred G. Paulson died in July 2002.[6] Paulson grew up in Queens, a borough known for its middle-class and working-class neighborhoods, before pursuing higher education in business and finance. His upbringing in New York City would later inform his deep connections to the city's financial industry.

Education

Paulson attended New York University, where he earned a Bachelor of Arts degree. He subsequently attended Harvard Business School, where he earned a Master of Business Administration (MBA).[7] His academic background at two of the most recognized institutions in business education provided the foundation for his career in investment management. Paulson maintained ties to NYU throughout his career, becoming a major donor to the university and serving as a board member of the NYU Stern School of Business.[8]

Career

Early Career and Founding of Paulson & Co.

Before founding his own firm, Paulson worked in various roles within the financial industry, gaining experience in mergers and acquisitions and investment management. In 1994, he established Paulson & Co., a New York-based investment management firm. In its early years, the firm focused on merger arbitrage — a strategy involving the buying and selling of stocks of companies involved in mergers and acquisitions to profit from price discrepancies.[9] For over a decade, Paulson & Co. operated as a relatively small and lesser-known hedge fund, managing modest sums compared to the industry's largest players.[10]

The Subprime Mortgage Trade (2005–2008)

Paulson's career-defining moment came in the mid-2000s, when he identified what he believed to be a massive bubble in the United States housing market. In 2005, while Wall Street broadly maintained confidence that housing prices could not experience a nationwide decline, Paulson began studying the subprime mortgage market closely. Ratings agencies at the time dismissed the possibility of widespread defaults, and banks continued to generate large profits from mortgage-backed securities.[1]

Paulson devised a strategy to profit from the anticipated collapse by purchasing credit default swaps — financial instruments that function essentially as insurance contracts against the default of debt securities. By buying credit default swaps on pools of subprime mortgages, Paulson was effectively betting that these mortgages would fail. In 2006, he launched two dedicated funds to execute this strategy: the Paulson Credit Opportunities Fund and the Paulson Credit Opportunities Fund II.

When the housing market began to deteriorate in 2007 and subprime mortgage defaults surged, Paulson's positions generated extraordinary returns. His funds earned approximately $15 billion in profits from the trade, and Paulson personally earned nearly $4 billion that year alone.[1] The scale of the profits was unprecedented in the hedge fund industry. The trade transformed Paulson, as one account described, "from an obscure money manager into a financial legend."[2]

The trade attracted intense media scrutiny and public interest. It was later chronicled in detail by Wall Street Journal reporter Gregory Zuckerman in the 2009 book The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History. The book described how Paulson and his team identified the vulnerability of the subprime market and executed their strategy despite skepticism from much of the financial establishment.

Paulson's trade also became a subject of regulatory controversy. In 2010, the U.S. Securities and Exchange Commission filed a civil fraud lawsuit against Goldman Sachs related to Abacus 2007-AC1, a synthetic collateralized debt obligation (CDO) that Goldman had structured and marketed. The SEC alleged that Goldman had allowed Paulson & Co. to influence the selection of mortgage securities included in the CDO without disclosing to investors that Paulson intended to bet against the instrument. Goldman Sachs settled the case for $550 million. Paulson & Co. was not named as a defendant in the case.

Post-Crisis Investments and Performance

Following his success with the subprime trade, Paulson became one of the most closely watched investors on Wall Street. His assets under management grew substantially as investors sought to participate in his future trades. In 2010, Paulson earned $4.9 billion, again ranking among the highest-earning hedge fund managers in the world.[3]

However, Paulson's post-crisis investment record was more mixed. He made large bets on gold, establishing a dedicated gold fund, and invested heavily in several individual companies across various sectors. Some of these investments generated significant losses. Paulson's gold fund suffered steep declines in years when gold prices fell, and several of his equity positions underperformed.

Despite these setbacks, Paulson & Co. continued to manage billions of dollars in assets and remained an active participant in the market. In the 2020s, Paulson's 13F filings with the SEC continued to draw attention from market analysts and financial media. In the third quarter of 2025, the firm made a significant increase in its position in Bausch Health Companies Inc.[11] In the fourth quarter of 2025, filings showed changes in the firm's position in Madrigal Pharmaceuticals Inc.[12]

Mining and Industrial Investments

Paulson also established positions in the mining and natural resources sector. In October 2025, one of his investment positions — a stake in Trilogy Metals, a small mining company — generated a significant windfall after the company's share price tripled following news of a government investment in the firm.[13]

Paulson's industrial interests have also drawn public scrutiny. In February 2026, workers at a Conn-Selmer musical instrument factory in Ohio criticized Paulson after learning of plans to close the plant and move production to China. The criticism was notable given Paulson's public advocacy for domestic manufacturing and his support for trade policies aimed at reducing offshoring. The Guardian reported that workers decried the plan after Paulson had "painted himself as advocate for domestic manufacturing."[14]

Political Activity and Advisory Roles

Paulson has been a significant political donor, primarily to Republican candidates and causes. His political contributions have been tracked by various outlets over the years.[15]

Paulson was an early and prominent supporter of Donald Trump's political activities. In August 2016, he was named as a member of Trump's economic advisory team during the presidential campaign. The Washington Post identified Paulson among a group of ultra-wealthy individuals assembled to advise Trump on economic policy.[16][17]

Following Trump's election in November 2016, Bloomberg reported that Paulson's early support for Trump positioned him for potential influence and profit. The outlet described the political connection as "Paulson's Big Long," drawing an analogy to his famous short trade, characterizing his early backing of Trump as a calculated bet that yielded "power and profit."[18] Vanity Fair also reported that Paulson had cultivated a close relationship with Trump and was positioned to seek favorable policy outcomes.[19]

Forbes identified Paulson as "one of Donald Trump's earliest supporters on Wall Street" in its October 2025 reporting on the Trilogy Metals windfall.[13]

Personal Life

Paulson resides in New York City. He has owned a townhouse at 9 East 86th Street on the Upper East Side of Manhattan, a property that has been noted in real estate and architectural coverage of the city.[20]

Paulson has three children. His former wife, Jenny Paulson, is of Romanian descent. The Bucharest Herald described Jenny Paulson as one of the wealthiest Romanian-born women in the world, noting her connection to the Paulson family fortune, which was estimated at approximately $7 billion at the time of reporting.[21]

In September 2025, Paulson's name appeared in coverage related to Jeffrey Epstein's contact list. Washington Square News, NYU's student newspaper, reported that Paulson was identified as "one of the billionaires" listed in Epstein's so-called "black book." The report noted Paulson's position as a major NYU donor and Stern School of Business board member.[8] Appearing in Epstein's contact list does not imply involvement in illegal activity; the contacts included a broad range of public figures.

Philanthropy

Paulson has engaged in significant philanthropic activity, directing substantial donations to educational institutions and public spaces.

Central Park Conservancy

In October 2012, Paulson donated $100 million to the Central Park Conservancy, the nonprofit organization that manages Central Park in Manhattan. The donation was one of the largest gifts ever made to a New York City park. The New York Times reported the gift as a major contribution to the maintenance and preservation of the iconic public space.[22]

New York University

Paulson has been a major donor to New York University, his undergraduate alma mater. He has served on the board of the NYU Stern School of Business and has contributed significant funds to the university. His position as one of NYU's most prominent donors has been the subject of media attention.[8][7]

Hebrew University of Jerusalem

Through the Paulson Foundation, Paulson and his family have made substantial donations to the Hebrew University of Jerusalem for STEM (science, technology, engineering, and mathematics) programs. As of early 2026, the Paulson Foundation's cumulative donations to the university totaled $46 million, representing one of the institution's largest-ever gifts. The funds were directed toward programs at the university's Givat Ram campus.[23]

Recognition

Paulson's 2007 trade against the subprime mortgage market is considered one of the most profitable trades in financial history. The trade was the subject of Gregory Zuckerman's 2009 book The Greatest Trade Ever, which provided a detailed account of how Paulson identified the housing bubble and executed his strategy. The book brought wide public awareness to Paulson's role in the financial crisis era.

Paulson has consistently appeared on Forbes lists of the wealthiest Americans and the world's billionaires. As of August 2025, Forbes estimated his net worth at approximately $3.8 billion. He has been named among the top-earning hedge fund managers in multiple years, most notably in 2007, when he earned nearly $4 billion, and in 2010, when he earned $4.9 billion.[3]

His investment strategies and portfolio moves continue to be closely tracked by financial analysts and media outlets, with his firm's quarterly 13F filings regularly generating coverage in outlets such as Yahoo Finance, Insider Monkey, and other financial publications.[12][11][24]

Legacy

Paulson's place in financial history rests primarily on his 2007 subprime mortgage trade, which remains a defining event in the annals of hedge fund investing. The trade demonstrated both the potential profits available to investors who correctly identified systemic risks in financial markets and the role that complex financial instruments such as credit default swaps played in the 2007–2008 financial crisis. His success contributed to broader public debates about the structure of financial markets, the role of hedge funds, and the ethics of profiting from economic downturns that caused widespread harm to homeowners and the broader economy.

As a philanthropist, Paulson's $100 million donation to Central Park and his multi-million-dollar contributions to NYU and the Hebrew University of Jerusalem placed him among New York City's most significant individual donors to public and educational institutions.

His political involvement — particularly his early support for Donald Trump and his role on Trump's economic advisory team — positioned him as one of the most politically active figures in the hedge fund industry. The intersection of his financial interests, political activity, and public advocacy on issues such as domestic manufacturing has continued to generate scrutiny, as illustrated by the 2026 controversy over the closure of the Ohio Conn-Selmer plant.[14]

Paulson & Co. has remained active in the investment management industry, though the firm's assets under management have declined from their peak. Paulson's career trajectory — from a modest merger-arbitrage fund manager to one of the wealthiest and most prominent investors of his generation — is frequently cited in discussions of the hedge fund industry and the role of individual investors in global financial markets.

References

  1. ↑ 1.0 1.1 1.2 "Why John Paulson made $20 billion while America burned".MSN.2026-02-20.https://www.msn.com/en-us/money/topstocks/why-john-paulson-made-20-billion-while-america-burned/vi-AA1V9WCE?ocid=finance-verthp-feeds.Retrieved 2026-02-24.
  2. ↑ 2.0 2.1 "John Paulson Profits in Downturn".Portfolio.com.2009-01-07.http://www.portfolio.com/executives/features/2009/01/07/John-Paulson-Profits-in-Downturn.Retrieved 2026-02-24.
  3. ↑ 3.0 3.1 3.2 "Top 25 Hedge Fund Earners in 2010 Rich List".Business Insider.2011-04.http://www.businessinsider.com/top-25-hedge-fund-earners-in-2010-rich-list-2011-4?op=1.Retrieved 2026-02-24.
  4. ↑ "John Paulson".The New York Times.http://topics.nytimes.com/top/reference/timestopics/people/p/john_paulson/index.html.Retrieved 2026-02-24.
  5. ↑ "Queens-born John Paulson makes fortune on housing bust".New York Daily News.2008-01-16.http://www.nydailynews.com/money/2008/01/16/2008-01-16_queensborn_john_paulson_makes_fortune_on.html.Retrieved 2026-02-24.
  6. ↑ "Paid Notice: Deaths — Paulson, Alfred G.".The New York Times.2002-07-25.https://www.nytimes.com/2002/07/25/classified/paid-notice-deaths-paulson-alfred-g.html.Retrieved 2026-02-24.
  7. ↑ 7.0 7.1 "NYU Stern Newsroom".New York University Stern School of Business.http://www.stern.nyu.edu/Newsroom/NewsReleases/CON_021921.Retrieved 2026-02-24.
  8. ↑ 8.0 8.1 8.2 "NYU megadonor John Paulson under fire for Epstein 'black book' listing".Washington Square News.2025-09-11.https://nyunews.com/news/2025/09/11/john-paulson-epstein-list/.Retrieved 2026-02-24.
  9. ↑ "Face to Face: John Paulson".Pensions & Investments.2007-07-09.http://www.pionline.com/apps/pbcs.dll/article?AID=/20070709/FACETOFACE/70705017/1021/TOC.Retrieved 2026-02-24.
  10. ↑ "Fund Lessons from John Paulson".TheStreet.http://www.thestreet.com/story/10619113/fund-lessons-from-john-paulson.html.Retrieved 2026-02-24.
  11. ↑ 11.0 11.1 "John Paulson's Strategic Move: Significant Increase in Bausch Health Companies Inc.".Yahoo Finance.2025-11-14.https://finance.yahoo.com/news/john-paulsons-strategic-move-significant-220546593.html.Retrieved 2026-02-24.
  12. ↑ 12.0 12.1 "John Paulson's Strategic Moves: Madrigal Pharmaceuticals Inc. Sees a -3.09% Impact".Yahoo Finance.2026-02-18.https://finance.yahoo.com/news/john-paulsons-strategic-moves-madrigal-230802010.html.Retrieved 2026-02-24.
  13. ↑ 13.0 13.1 TuckerHankHank"Billionaire Trump Donor Paulson Scores Windfall Thanks To Government's Investment In Trilogy Metals".Forbes.2025-10-07.https://www.forbes.com/sites/hanktucker/2025/10/07/billionaire-trump-donor-paulson-scores-windfall-thanks-to-governments-investment-in-trilogy-metals/.Retrieved 2026-02-24.
  14. ↑ 14.0 14.1 "Trump donor who criticized offshoring to close Ohio plant and move work to China".The Guardian.2026-02-16.https://www.theguardian.com/business/2026/feb/16/john-paulson-conn-selmer-ohio-factory-china-trump.Retrieved 2026-02-24.
  15. ↑ "John Paulson Political Donations".Newsmeat.https://web.archive.org/web/20131009224946/http://www.newsmeat.com/billionaire_political_donations/John_Paulson.php.Retrieved 2026-02-24.
  16. ↑ "Donald Trump's economic team: The ultra rich to the rescue".The Washington Post.2016-08-05.https://www.washingtonpost.com/news/wonk/wp/2016/08/05/donald-trumps-economic-team-the-ultra-rich-to-the-rescue/.Retrieved 2026-02-24.
  17. ↑ "Trump John Paulson".ValueWalk.2016-08.http://www.valuewalk.com/2016/08/trump-john-paulson/.Retrieved 2026-02-24.
  18. ↑ "Paulson's Big Long: A Bet on Trump Yields Power and Profit".Bloomberg.2016-11-21.https://www.bloomberg.com/news/articles/2016-11-21/paulson-s-big-long-a-bet-on-trump-yields-power-and-profit.Retrieved 2026-02-24.
  19. ↑ "John Paulson Trump Favor to Ask".Vanity Fair.2016-11.http://www.vanityfair.com/news/2016/11/john-paulson-trump-favor-to-ask.Retrieved 2026-02-24.
  20. ↑ "9 East 86th Street — John Paulson Townhouse".Brick and Cornice.http://brickandcornice.com/9-east-86th-street-john-paulson-townhouse/.Retrieved 2026-02-24.
  21. ↑ "Jenny Paulson: Wealthiest Romanian Woman in the World".Bucharest Herald.https://web.archive.org/web/20120702175339/http://www.bucharestherald.com/dailyevents/41-dailyevents/27896-jenny-paulson-wealthiest-romanian-woman-in-the-world-her-wealth-stands-at-7-billion-dollars.Retrieved 2026-02-24.
  22. ↑ "Billionaire Donates $100 Million to Central Park".The New York Times.2012-10-24.https://www.nytimes.com/2012/10/24/nyregion/billionaire-donates-100-million-to-central-park.html.Retrieved 2026-02-24.
  23. ↑ "Paulson Foundation makes additional donation to Hebrew University for STEM, bringing total to $46M".eJewishPhilanthropy.2026-01.https://ejewishphilanthropy.com/paulson-foundation-makes-additional-donation-to-hebrew-university-for-stem-bringing-total-to-46m/.Retrieved 2026-02-24.
  24. ↑ "Hedge Fund and Insider Trading News: Rob Citrone, John Paulson, Bill Ackman, Ray Dalio, David Tepper...".Insider Monkey.2026-02-18.https://www.insidermonkey.com/blog/hedge-fund-and-insider-trading-news-rob-citrone-john-paulson-bill-ackman-ray-dalio-david-tepper-third-point-jana-partners-balyasny-asset-management-waste-management-inc-wm-and-more-1697708/.Retrieved 2026-02-24.

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