Getting his man elected president aside, John Paulson had a rough 2016. His flagship funds dropped by double-digits, and because he sold off a bunch of positions just before the Trump economic miracle (and held on to some he shouldn’t have), didn’t benefit from the Orange Rally that followed the Donald’s election. Not coincidentally, assets have also been flying out the door in the form of redemptions. Also not coincidentally, he plummeted to 170th in the world billionaire ranking on account of being almost $2 billion lighter than he was at the beginning of last year.
Not coincidentally, JP’s not feeling terribly generous this bonus season.
Several top executives at the hedge fund outfit are reeling after receiving what is known in the financial industry as “zeroes,” meaning little or no bonus for 2016, according to people with knowledge of the matter. These people also say that Paulson, who was an economic adviser to Donald Trump during the 2016 president campaign, may possibly be cutting staff and closing underperforming funds amid the performance woes….
“People are miserable there,” said one person with direct knowledge of the matter. “These are people with very high lifestyles who aren’t getting paid.”
John Paulson Slashes Bonuses at Hedge Fund After Dismal 2016 [Fox Business/Gasparino]