Hedge Fund Titans Pull Money From Funds for Huge Tax Bills
- Einhorn, Paulson, Cohen among those who dipped into holdings
- Rule change tied to offshore funds meant hit for 2017
Hedge Fund Titans Pull Funds to Pay Massive Tax Bills
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Hedge-fund billionaires were already struggling to keep investors from heading out the door. Then along came another problem: big tax bills.
David Einhorn, John Paulson, Steve Cohen and other high-profile managers cumulatively owed billions of dollars to federal, state and local governments for taxes, thanks to a 2008 rule change tied to offshore holdings that gave them a decade to comply. To make the payments, they had to pull some of their own money from their funds.