Hedge fund manager John Paulson is teaming up with an insurer to launch a new fund designed to lower U.S. taxes for participating investors.
Bloomberg reported that high-net worth investors and family office clients in New York-based Paulson & Co. can make investments through the hedge fund’s merger-arbitrage strategy either through an annuity that defers income taxes or a tax-free life insurance policy for beneficiaries. Both offerings are available through insurer Philadelphia Financial Group.
The article said that Paulson & Co. decided to start the fund after its retail investors asked for an investment solution that would decrease income taxes.
Paulson, who began marketing the new fund to investors last month, even considered moving to Puerto Rico to avoid domestic high tax rates, according to an earlier eVestment article.
Paulson rose to fame after making $3.7 billion in 2007 by short-selling subprime mortgages. Paulson & Co. currently manages approximately $18 billion in in assets, down from its $36 billion AuM in 2010.