Behind every billionaire there is a story!

John Paulson plans hedge fund to support cash-strapped banks

John Paulson, who recorded what was thought to be the single biggest profit in the history of the hedge fund industry last year by betting on a financial collapse, is planning a new fund to provide capital to cash-strapped banks.

Mr Paulson’s New York-based Paulson & Co plans to open a new hedge fund by the end of the year to buy into financial institutions raising cash, although the plans have not yet been finalised. Investors said they expected to see documentation for the new fund next month, assuming it went ahead.

The move suggests Mr Paulson is preparing to call the bottom of the market for financials, a shift likely to be closely watched by other investors. Mr Paulson was the flag-carrier last year for a group of hedge funds that made enormous profits - estimated by investors at more than $12bn for Paulson’s funds - by shorting, or betting against, subprime mortgages.

read the rest published by FT here:

http://www.ft.com/cms/s/0/23f9de96-5917-11dd-a093-000077b07658.html