Paulson: The Economy Is Improving (and I made a billion on Citi)

John Paulson is out with his year-end letter.

In the letter, Paulson writes that the most profitable position for is hedge fund, Advanatge, was a position in Citigroup. The position, held approximately 18 months, according to the letter "gained 43 per cent in 2010 and was our most profitable bank position.

In total we have achieved over $1bn of gains in our Citigroup position since initiation in mid-2009.

Paulson, in the letter, also wrote of his current positive outlook for his funds:

We are very excited about the outlook for our funds. [especially in assets purchased] at deeply distressed prices.