By Svea Herbst-Bayliss
(Reuters) – Billionaire John Paulson is turning his hedge fund firm into a family office after setting the stage for the conversion last year, according to a source familiar with the matter.
Paulson now joins a number of prominent fund managers – Carl Icahn, George Soros, Stanley Druckenmiller – who have stopped managing money for outsiders to concentrate on investing their family fortune.
Paulson shot to fame during the financial crisis with a bet against the overheated U.S. housing market and managed $38 billion at one point.
Assets had been dwindling for years and a number of prominent managers had been leaving the firm to set out on their own or join other managers.
In a regulatory filing in March, Paulson said the firm had roughly $10.7 billion in assets under management at the start of the year and that John Paulson was the sole owner of certain funds being managed by the firm.
Bloomberg News had earlier in the day reported on Paulson’s move, citing a letter from him to investors.
“After considerable reflection and careful thought, Paulson & Co. will convert into a private investment office and return all external investor capital,” he wrote in the letter, the report https://www.bloomberg.com/news/articles/2020-07-01/john-paulson-to-convert-hedge-fund-firm-into-a-family-office?sref=ZoyErlU1 said.
A spokesman for Paulson could not be reached for comment.
(Additional reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli and Arun Koyyur)
