John Paulson, who made billions anticipating the 2008 financial crisis, has decided to “hand his investors’ their cash back and turn his firm into a family office.” This according to a recent article in The Wall Street Journal.
The decision has reportedly “been long telegraphed as assets at his firm have fallen and returns declined,” with the fund down over 10% year-to-date. The article notes that investors have been exiting Paulson’s funds for nearly a decade—to the point where the firm was managing less than $9 billion last year versus $38 billion in 2011.
Paulson joins a growing list of well-known investors that have called it quits in recent years, including Leon Cooperman, Eric Mindich and Jonathan Jacobson—a result of the hedge fund industry’s inability to keep up with the broader market, according to the article.
In a letter to clients, the 64-year-old Paulson wrote, “The last 26 years of running an asset management firm have been thoroughly rewarding. Recent volatility notwithstanding, I am proud of our long-term returns.” He added, “With one chapter closing, a new one is beginning for me and I look forward to continuing as an active participant in financial markets.”