Paulson makes another $1bn

John Paulson

John Paulson’s hedge funds made almost $1bn on his investment in OneWest Bank, which is being purchased by CIT Group for $3.4bn in cash and stock.

Bloomberg News reports that the $21.4bn Paulson & Co. owns the investment through its Recovery Fund, which was created in October 2008, and a credit pool, according to a memo sent to clients. The funds spent $400m to purchase a 24.9% stake in OneWest in 2009. The sale values that stake at $788m and Paulson also received $551m in dividends. The total gain for the funds is $939m.

The transaction will take six to nine months to close and Paulson & Co. will be restricted from trading the stock for six months, the firm wrote in the memo.

To access the complete Bloomberg News article hit the link below:

John Paulson Makes Almost $1 Billion on OneWest Sale

Money Funds Get New Restrictions Aimed at Preventing Runs

 

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