The investment in the former has made Paulson and Co over $1 billion since mid-2009 and the latter is on the up and up.
Citigroup was the fund’s most profitable bank holding last year, Paulson said in a letter to clients this month. “Citigroup demonstrates the upside potential of many of the restructuring investments we have added to our portfolio and our ability to generate above-average returns in large positions,” Paulson said in the letter. Paulson sold 82.7 million shares in New York-based Citigroup in the third quarter, leaving it with 424 million shares, according to filings. The bank was Paulson’s fourth- largest U.S. equity holding in the period.Paulson, which manages $35.9 billion, said it expects to see continued U.S. economic growth this year.
“We believe the U.S. economy is recovering and we anticipate continued growth,” the firm said in the letter.