John Paulson: Wall Street’s biggest payday
John Paulson, the billionaire hedge fund manager whose bet against the overheated housing market had made him one of the world’s wealthiest people and became a lot richer last year for the $US1.9 trillion hedge fund.
The founder of founder of Alpha Capital Management, Brad Alford proved that Paulson said that Paulson did it on both short and long side as he can really do it all.
The overall average hedge fund gained 10.5 per cent last year and fell short of the industry’s own 19 per cent return in 2009 according to data Hedge Fund Research showed. What fattened Mr. Paulso’s layout is the fact that his 17-year-old firm Paulson & Co oversees about $US35 billion. Analysts and investors said that the industry payouts seem less fair.
Stewart Massey, the one who invests with hedge funds at Massey, Quick & Co. said that people are fine with hedge fund fee structures as long as they are making great returns. It’s like those companies that offer quick cash loans such as cash advance payday loans, advance loans, payday cash advance, payday cash loan, payday advance loan and the likes. These companies take risk in lending money to make great returns.
Experts that investors’ demands on pay will hold more sway as hedge funds look for new investors. There should be a push from some investors to set a so-called hurdler rate or perhaps a minimum accepted rate of return for the manager pay or to reward them only if they exceeded certain benchmarks may gain traction. These big paydays at hedge funds are likely to confirm that there can modern-day gold mines on Wall Street and sparked even more movement from the world of banking and similar fund management into this asset class.
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Source : http://www.smh.com.au/business/the-5b-man-wall-streets-biggest-payday-20110131-1aab8.html
