Hedge Funds

Investors pulled $2.2 billion from Paulson in 2010


The redemptions have affected marketing plans for the Advantage fund.

John Paulson
 John Paulson
Photograph by Mike McGregor

Despite generating profits of more than $8.6 billion in 2010, John Paulson’s Paulson & Co. was hit with redemptions of at least $2.2 billion at the end of last year, leaving the Paulson Advantage Fund open new capital.

As of January 1, Paulson managed $36 billion, according to a letter to investors sent this week. That’s up $4 billion from the $32 billion in assets the firm had at the start of 2010, despite generating profits of $8.6 billion, including fees, in 2010. Investors said the redemptions are