NEW YORK ( TheStreet) -- John Paulson, the hedge-fund manager, personally made more than $5 billion in profits in 2010, the Wall Street Journal reports, likely the largest one-year gain in investing history.

Paulson's take tops the nearly $4 billion he made with his short bets against subprime mortgages in 2007, according to the Journal.

Some of Paulson's profits are so-called paper gains, and could erode if those investments go bad, the newspaper notes. Other gains come from selling investments, and most of those are rolled back into funds run by Paulson and his managers.

Paulson and the other top managers made winning bets on commodities, like gold, emerging-market companies, bank shares and U.S. Treasury bonds, among other investments. The gains also came from the sheer size of the assets that Paulson controls -- the largest hedge fund in his $36 billion investment portfolio, Advantage Plus, grew 17% last year, the Journal notes.

Paulson also racked up gains from performance fees, which totaled about $1 billion last year, the Journal reports, citing a person familiar with the matter.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

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