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John Paulson Trivia Questions

How much do you really know about John Paulson? Below are 8 true or false statements. Click each one to reveal the answer and explanation.

1.

John Paulson is the inventor of the Paulson Ratio, a key metric in hedge fund analysis.

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Easy
✗ FALSE

No widely recognized metric called the 'Paulson Ratio' exists in finance. The term may be a conflation with the Sharpe ratio, a common risk measure, but John Paulson himself is known for his famed short against subprime mortgages, not for inventing a ratio.

2.

John Paulson once owned a private island in the Caribbean.

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Medium
✗ FALSE

He owned a $41 million estate in Puerto Rico and properties in the Hamptons, but no known private Caribbean island.

3.

John Paulson made his fortune betting against subprime mortgages in 2007-2008.

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Medium
✓ TRUE

He famously shorted the housing market via credit default swaps, earning billions for his hedge fund during the financial crisis.

4.

John Paulson graduated from New York University with a degree in business administration.

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Medium
✓ TRUE

He earned a Bachelor of Business Administration (BBA) from NYU’s Stern School of Business in 1978, graduating summa cum laude.

5.

Paulson was a top donor to Hillary Clinton’s 2016 presidential campaign.

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Medium
✗ FALSE

He donated heavily to Donald Trump and Republican causes, not Hillary Clinton.

6.

Paulson started his career as a mergers and acquisitions banker at Bear Stearns.

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Hard
✓ TRUE

He worked in M&A at Bear Stearns and later at Gruss Partners before launching his own hedge fund.

7.

John Paulson’s former wife sued him for $1 billion in their divorce.

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Hard
✓ TRUE

In 2021, Jenny Paulson filed a divorce lawsuit seeking at least $1 billion, accusing John Paulson of hiding assets. The case was settled privately.

8.

John Paulson lost nearly all his personal fortune after 2011 due to failed gold bets.

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Hard
✗ FALSE

Paulson's wealth declined from its peak of about $16 billion, but he remained a multi‐billionaire. Forbes estimated his net worth in the billions as recently as 2024, so he did not lose nearly all his fortune.

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