Who Made $5 Billion Last Year?

By Derek Thompson

The same guy who made $4 billion in 2007: Hedge fund mastermind John Paulson.

John Paulson, who runs his own hedge fund, made $4 billion in 2007, inspiring the book The Greatest Trade Ever. Time for another book. Last year, Paulson made $5 billion. To put that figure into perspective: that's insane.

It is insane. It's also the GDP of Sierra Leone.

But to be fair, "profit" for a hedge fund manager isn't your paycheck or mine:

Some of the profits are so-called paper gains, which reflect the rising value of their firms' holdings, and could erode if those investments sour. Other gains come from selling investments, and most of those are rolled back into their funds.

Read the full story at Gawker.

This article available online at:

http://www.theatlantic.com/business/archive/2011/01/who-made-5-billion-last-year/70441/