Hedge fund manager John Paulson told Paulson & Co. clients that the company made more than $1 billion during the past 18 months on its investment in Citigroup (C), Bloomberg News reported, citing Paulson's letter to clients this month.

Paulson benefited from a 43% jump in Citigroup's stock last year. The hedge fund sold about 83 million shares of Citigroup, or about 16% of its stake, during the third quarter of 2010, the wire service said.

The biggest of Paulson's hedge funds saw its value increase as much as 18% (depending on share class) in 2010, or more than double the 7% average hedge fund return last year, Bloomberg reported, citing Paulson's letter and its own data. In all, Paulson's funds had more than $8.4 billion in 2010 gains.

Paulson bet big on a bank that received about $45 billion in its taxpayer-funded bailout in 2009. Citigroup converted $25 billion into stock and paid back the other $20 billion in late 2009. The Treasury Department said in December that it would sell its remaining 2.4 billion common shares of Citigroup as the federal government looks to divest itself from one of its largest bank bailouts.

Paulson & Co. spokesman Armel Leslie declined to comment on the letter, Bloomberg reported.

Paulson was the fourth-highest-paid U.S. hedge fund manager in 2009, with his $2.3 billion in compensation trailing that of only Appaloosa Management's David Tepper, Soros Capital Management's George Soros and Renaissance Technologies' James Simons, according to AR Absolute Return.


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ronerz11

Citibank's stock was around $1.00 about a couple of years ago. Like Ford stock it made a good comeback and made a lot of people rich.

January 24 2011 at 8:17 PM Report abuse +1 rate up rate down Reply
aracollections

What a SCAM. These banks make Bernie Madoff and ENRON look like jokes. Take from the taxpayer, pump up the stock, take the money & run before the foreclosure racket finally runs dry.

January 24 2011 at 6:48 PM Report abuse rate up rate down Reply
scottee

consider this alternative to Obamacare...the Physicians for a National Health Program...HR676
and please read The Cure for Our Broken Political Process by Sol Erdman...

January 24 2011 at 6:29 PM Report abuse rate up rate down Reply
555555

wheres all the comments about this article ? is everyone asleep ..or are they not posting them...because this guys fortune is absurd

January 24 2011 at 6:22 PM Report abuse +2 rate up rate down Reply
maloontransllc

How much money does one man need. Children in this country are starving and living on the streets people are losing there homes with no place to go. this guy makes billions on a bank that you and I had to bail out. Am I crazy or does this seem a like a sham.....

January 24 2011 at 4:39 PM Report abuse +2 rate up rate down Reply
1 reply to maloontransllc's comment
Air Jordan

Invest in citibank. Less than $5.00 a share. It will be $25.00 in 2 years. Quit being a crybaby, the man's good fortune was all legal. I feel bad for the poor, I don't feel bad for the LAZY

January 24 2011 at 5:43 PM Report abuse -1 rate up rate down Reply