European arm of Paulson has profit slump

 
Marion Dakers
THE EUROPEAN arm of hedge fund Paulson has posted a collapse in profits for the year to March 2012.

Turnover at Paulson Europe LLP fell 64 per cent to £13.3m, leaving its members with just £3.7m profit, down from £26.5m the previous year.

The firm, whose main activity is listed as “the provision of investment research to Paulson & Co”, saw earnings from work done for its parent company slashed.

John Paulson’s $19bn hedge funds have been battered by wrong bets on the European debt crisis and a global economic recovery in the last two years.

The total number of employees rose from 11 to 16, though staffing costs fell from £8.4m to £7.2m.