John Paulson Discusses his 2011 Awful Year

John Paulson, the President and Founder of Paulson & Co. was made famous in the early days of the financial crisis when his courageous bet against the sub prime mortgage market made him a household name, even outside of the investment sector. Between 2006 and 2007, he made $15 billion on these types of trades. That propelled him to the top of the hedge fund world in both assets and notoriety.

In 2011, however, his notoriety was of a different kind. Paulson's Advantage Funds fell by 36 per cent that year. He was one of the worst performers in one of the...