April 16 (Bloomberg) -- John Paulson, founder of New York- based Paulson & Co., was paid an estimated $3.7 billion last year, the most in the hedge fund industry, according to Institutional Investor's Alpha Magazine.
Paulson, 52, surpassed George Soros and 2006's top earner James Simons in a ranking of the 50 highest-paid hedge fund managers. Soros placed second, earning about $2.9 billion. Simons was third, making an estimated $2.8 billion last year.
Paulson & Co., which oversees about $28 billion, made money betting on the collapse of subprime mortgages in 2007. The Paulson Credit Opportunities Fund soared almost sixfold, helped by bets on slumping housing and subprime mortgage prices, according to investor letters obtained by Bloomberg.
``Paulson made all that money because his returns were absolutely exceptional -- he called the market right,'' said John Godden, managing partner of IGS, a London-based hedge fund consultant. ``The lucky people in his funds also made fabulous returns.''
Simple lesson here: Call the Market right = MAKE BILLIONS!!!
