Hedge fund guru John Paulson predicted in a conference Thursday that Puerto Rico will become the Singapore of the Caribbean.
Bloomberg reported that Paulson, the founder and president of New York-based Paulson & Co., said during the 2014 Puerto Rico Investment Summit in San Juan that the island’s economy is at the beginning of a turnaround. The conference aims to promote the territory and attract investors to the region.
Paulson & Co. has been expanding its involvement in Puerto in the last year by purchasing a stake in the St. Regis Bahia Beach Resort and the Bahia Beach Resort & Golf Club. The firm also plans to invest $1 billion in projects on the U.S. commonwealth over the next two years.
According to an eVestment article last year, Paulson denied rumors that he was planning to move to Puerto due to tax incentives. A Puerto Rican law that was passed last year eliminated taxes on gains, which would benefit Paulson as he has about $9.5 billion invested in his own hedge funds.
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.