Paulson with Ahuja at the Alpha Masters book party in Manhattan.
Most in the investing community know Alan Greenspan is a high-profile advisor to Paulson's namesake hedge fund, but few probably know how the partnership came to be. In the spring of 2007, Greenspan hosted an exclusive dinner at Deutsche Bank (the guest list included Bruce Kovner of Caxton Associates, Henry Swieca of Highbridge, and Israel "Izzy" Englander of Millenium Partners).
The former Federal Reserve chairman was already advising a bank--Deutsche Bank--and an asset manager, bond powerhouse Pimco. But he wanted one more client, a hedge fund. Paulson was at the dinner, and he hit it off with Greenspan, who joined Paulson's advisory board in January 2008.
Paulson (whose returns have been down) says Greenspan has helped him better understand how the monetary system works. "I had never looked at a Fed balance sheet," he tells Ahuja." I didn't know what the monetary base was or what money supply was."
NEXT
