John Paulson, Paulson & Co.
John Paulson of Paulson & Co. wowed the market with his perspicacious call on the housing market. The hedge fund alerted investors to the upcoming burst of the housing market bubble in mid-2006 and bet accordingly. As a result, the hedge fund's Credit Opportunities Fund returns soared almost six times. Paulson personally reaped $3.7 billion last year, leading compensation for the hedge fund crowd.