Paulson posts record $5bn hedge fund profit

Hedge fund manager John Paulson netted more than $5bn (£3.15bn) last year, likely to be the biggest annual profit in investing history, according to the Wall Street Journal.

The figure betters the $4bn Paulson made in 2007 through shorting sub-prime mortgages. A chunk of the manager's profit came from his firm Paulson and Co's investment, and 20% from performance fees, while the majority came from investment gains in his funds. Paulson made winning bets on commodities, emerging market companies, bank shares and US treasury bonds. Other hedge fund managers who received huge rewards despite the fragile state of the world economy include Appaloosa Management founder David Tepper and Bridgewater Associates chief Ray Dalio, each personally making between $...