Wall Street

Hedge-Fund Manager Nets $5B

Hedge-fund manager John Paulson made more than $5 billion in profits in 2010, likely the largest one-year gain in investing history. But it’s not so much because they made winning bets as because they bet a lot: The largest hedge fund in Paulson’s $36 billion portfolio grew by 17 percent. One of his smart moves was to embed bets on the price of gold into each of his funds. Though he made more money than in 2007, the payoff wasn’t as spectacular as when he got returns of 590 percent by betting against subprime mortgages.