John Paulson, the famed US hedge fund manager who made a fortune shorting the US sub-prime debt market, has disclosed that his hedge fund group acquired 300 million shares of Citigroup in the third quarter, while selling its entire stake of Goldman Sachs Group, according to media reports.
The Citigroup holding, listed in a regulatory filing, marks his second major investment in a bank that received government bailout funds during the credit crunch. His group has also bought 168 million shares Bank of America.
Goldman Sachs, Citigroup and Bank of America own substantial wealth management businesses. Goldman is typically reticent about its wealth business, shunning media coverage. However, the firm’s CEO recently said that Goldman wished to expand this side of its business significantly.