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Paul Singer - 10 Facts You Need to Know

Updated: Nov 1, 2022


From psychologist, to billionaire, Paul Singer is an individual that many traders and investors can learn from.



In this article I am going to discuss who Paul Singer is and the top 10 facts you need to know about Singer, including:



Who is Paul Singer?

And why is he so important?


For those who don't know, Singer is an American billionaire hedge fund manager of one of the oldest hedge funds on Wall Street, Elliott Associates L.P. and the founder of Elliott Management Corporation.


Like many of us Paul Singer attended university where he studied Psychology and then went on to obtain a J.D. from Harvard Law School.




You might be wondering how did Paul Singer go from law student to hedge fund manager?


In 1974 Singer decided to work as an attorney in the real estate devision of an investment bank, Donaldson, Lufkin & Jenrette, acquired by Credit Suisse in 2000. After 3 years Singer left law to create his own investment company where he founded his hedge fund Elliott Associates L.P. in 1977.



Now let's get to the reason you're really here! I'm now going to walk you through 10 Facts You Need To Know about Paul Singer.



1. Paul Singer Net Worth


Let's start off with something we are all dying to know, Paul Singer's Net Worth.


As of March 2021 Paul Singer's net worth is a whopping 4.3 billion USD or 3.09 billion Pound Sterling.


I know I struggle to comprehend this number, so let me try and put it into perspective. 1 billion dollar stacked bills are 124 times taller than Burj Khalifa, the tallest building on the planet, making 4.3 billion dollar stacked bills 532 times taller! I'm still struggling to imagine that!




So, how exactly did Singer generate his large net worth?


As I've already mentioned, in 1977 Singer left law to create his own hedge fund Elliott Associates L.P. with 1.3 million USD in seed capital from friends and family. Singer sustained losses in his early career leading him to a very risk-averse approach when investing. Due to this caution, Elliott Management has had only two down years since 1977!


In 2020 Paul Singer ranked #222 on the Forbes 400 list of the wealthiest Americans, #538 on the Forbes World's Billionaires List and #19 on the Highest Earning Hedge Fund Managers List in 2019.



2. Elliott Management Corporation


We now know that Elliott Management Corporation was founded in 1977 by Paul Singer, identifies as an investment management firm and is known as one of the largest activists fund in the world.


What you don't know is that in the early years Elliott Management focused on a long-short strategy, convertible arbitrage, involving the purchase of convertible securities and short sale of the same issuer's common stock.


But, Singer soon transitioned Elliott into a multi-strategy hedge fund. Over one-third of Elliott's portfolio was concentrated in distressed securities by 2009, I will dive deeper into Paul Singer's investing approach in fact three.


How much is Elliott's portfolio worth? As of 2015 Elliott's portfolio was worth over 8 billion USD!


Fun Fact: the branding for the company is actually Paul Singer's middle name 'Elliott'.




3. Singer's Investing Approach


Let's get to the nitty gritty stuff, how did Singer accumulate such a huge portfolio? As I previously mentioned, Singer primarily focused on distressed assets.


So, what exactly is the distressed assets approach? This approach involves buying up bankrupt firms' debt, it made Singer so famous that he became known for "strong-arming his way to profit".


Paul Singer bought up sovereign bonds cheaply, and the went after countries for unpaid debts. One of the earliest examples of this was in 1996 where