The month of May is American Jewish History Month, so for this entire month I will continue share the stories of important Jewish figures in American finance. Today, I will share the story of John Paulson, who is a hedge fund manager that had the single most successful trade in the history of finance.
Paulson was born on December 14, 1955, in Queens, New York. His father, Alfred Paulson, was of Ecuadorian descent and worked as a CFO, while his mother, Jacqueline Boklan, had European-Jewish ancestry of Lithuanian and Romanian decent. Growing up in a middle-class household, Paulson developed a strong work ethic and an early interest in finance.
He attended New York University and then earned an MBA from Harvard Business School in 1980. His career began at the Boston Consulting Group, where he provided strategic advice to companies. Seeking a role in investment banking, he moved to Odyssey Partners, then worked in mergers and acquisitions at Bear Stearns, and later became a general partner at Gruss Partners LP.
In 1994, Paulson founded Paulson & Co., starting with $2 million and one employee. His firm gained global recognition in 2007, when he made billions betting against the U.S. subprime mortgage market using credit default swaps. This trade transformed him from an obscure money manager into a financial legend. In 2010, he set a hedge fund record by earning $5 billion in a single year.
Beyond finance, Paulson is a major philanthropist, donating $400 million to Harvard University. His firm has since evolved, adapting to market changes while maintaining its reputation in high finance. Paulson remains one of the most influential investors of his generation.