One could only imagine Paulson's additional profits had he ventured into the silver rather than the gold market. I am sure more of the herd hedge funds will follow into gold once word spreads of Paulson's latest success.

Regards - VHF

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John Paulson’s Golden Touch Makes Him Richest Hedge Fund Manager

Forrest Jones

April 1, 2011

John Paulson, head of the hedge fund that bears his name, was the top-earning manager of 2010, according to AR Magazine. Paulson earned $4.9 billion in 2010 thanks to bets on gold at Paulson & Co., shattering his record in 2007, when he earned $3.7 billion by betting that housing market was about to collapse.

Ray Dalio, of Bridgewater Associates, followed in second, earning $3.1 billion.

The top 25 hedge fund managers on the magazine's annual Rich List earned a combined $22.07 billion in 2010 — down nearly 13 percent from the $25.33 billion they earned in 2009, but the third-best year for the ranking since it was first published in 2001.

John Paulson (AP Photo)

"In 2001, the combined income of the top hedge fund managers was less than $5 billion — about what Paulson alone made in 2010," says Michelle Celarier, editor of AR.

Nearly 90 percent of Paulson's personal money is invested in either his gold fund, which returned more than 35 percent last year, or in the gold shares of his other funds, according to AR Magazine.