Billionaire John Paulson may turn his hedge fund into a family office

• Billionaire hedge fund manager John Paulson said he will decide on whether to turn his hedge fund into a family office in the "next year or two."
• Paulson told Michael Samuels, the host of a podcast and portfolio manager at Broome Street, that his wealth makes up 75% to 80% of his firm's assets.

Billionaire hedge fund manager John Paulson is giving himself two years to decide if he wants to turn his fund into one that manages only his own personal fortune.

Paulson, who made much of his wealth by betting against the housing market before the crash a decade ago, said on an episode of Broome Street Capital's podcast that his own money already makes up roughly three-quarters of his firm's assets.

"I'll have to make that decision in the next year or two," he said, citing George Soros and Stanley Druckenmiller as two fellow hedge fund managers that have decided to focus on managing their personal fortunes. Soros' personal wealth, Paulson said, made up 90% of his firm's assets when he decided to return outside capital and transition to a family office structure in 2011. Paulson's hedge fund manages roughly $9 billion.

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Several high-profile managers in 2018 decided to transition to family offices, including Omega Advisors founder Leon Cooperman, who said the market had been distorted by quants for traditional stock-pickers like himself to make a difference.

Paulson, who was one of President Donald Trump's most public Wall Street backers in 2016, also reiterated his support for Trump in the podcast, which is hosted by Broome Street portfolio manager Michael Samuels. Paulson said Trump can expect similar support from him if the president decides to run for re-election in 2020. The hedge fund manager donated $250,000 for Trump's inauguration celebration and more than $300,000 to his campaign.