Early Life
John Alfred Paulson was born on December 14, 1955, in Queens, New York City. His father, Alfredo Guillermo Paulsen, was of Ecuadorian descent, and his mother, Jacqueline, had European-Jewish ancestry. Paulson excelled academically from a young age.
Education and Early Career
Paulson graduated as valedictorian of his class from New York University's College of Business and Public Administration in 1978, earning a Bachelor of Science degree in finance. He earned an MBA from Harvard Business School in 1980, where he was a George F. Baker Scholar. He began his career at Boston Consulting Group in 1980, later working at Odyssey Partners, Bear Stearns, and Gruss Partners LP.
Rise to Success and Key Business Strategies
Paulson founded Paulson & Co. in 1994 with $2 million in capital. His firm focuses on event-driven investment strategies, including mergers, acquisitions, and distressed debt. He achieved significant financial success by shorting the U.S. housing market, earning billions during the subprime mortgage crisis of 2008. He made a record $5 billion in a single year in 2010, largely due to investments in the gold sector. He employed contrarian strategies, identifying market mispricings and taking positions against prevailing trends. His firm's assets under management peaked at around $36 billion.
Philanthropy
Paulson is also recognized for his philanthropic work. He founded the Paulson Family Foundation in 2009. His major donations include $400 million to Harvard University's School of Engineering and Applied Sciences, which was renamed in his honor, and a $100 million gift to the Central Park Conservancy in New York City.