Paul Singer: The Billionaire Investor Who Thrives on Stress and Risk

In a rare and candid interview with Nicolai Tangen, CEO of Norway’s sovereign wealth fund, Paul Singer, the founder of the $72 billion hedge fund Elliott Management, opened up about his perspective on today’s volatile markets, the challenges of managing a global financial giant, and his personal approach to stress and risk. Singer, known for his meticulous risk management and uncanny ability to navigate market turmoil, has built a reputation as one of the most respected—and feared—investors in the world. Despite his success, Singer made it clear that managing money isn’t his idea of fun. Instead, he finds joy in skiing, snowmobiling, and even playing the keyboard for rock bands.

A Life of Risk and Reward

Singer’s career in finance began in the early 1970s, when he lost money investing in stocks and options for his parents and friends. These early struggles shaped his focus on risk management, a principle that has guided him ever since. Today, Singer leads Elliott Management, a hedge fund he founded in 1977. Over nearly five decades, Singer’s firm has experienced losses in only two years—a testament to his ability to predict and mitigate risks. His investors have come to rely on his letters, which often outline doomsday scenarios, from cyberattacks to solar flares, that most others dismiss as far-fetched. For Singer, however, these scenarios are a reminder that markets are unpredictable, and complacency can be deadly.

The Weight of Responsibility

Running a $72 billion firm is no easy task, and Singer doesn’t sugarcoat the pressure that comes with it. When asked if he enjoys managing money and risk, Singer was blunt: "No." He described the constant need to stay vigilant as exhausting but necessary. "If I want to be risk-averse, I have to be risk-averse all the time," he said. "You can’t get bored by not losing serious money." Singer’s approach to investing is not just about making money; it’s about protecting capital and delivering results year after year. While he finds this work challenging and rewarding, it’s not something he does for fun.

Activism and Market Risks

Singer also discussed his firm’s activist approach to investing, which has made Elliott Management a formidable force in corporate America. He revealed that most companies welcome Elliott’s involvement, as the firm aims to improve performance and create value for shareholders. "We’re not crusaders; we’re not just speaking to hear ourselves speak," Singer said. "We have a goal; we have a thesis." He estimated that about 70% of Elliott’s campaigns succeed, leading to better business outcomes and higher stock prices.

However, Singer’s optimism about his firm’s track record is tempered by his concerns about the broader market. He described current stock markets as "just about as risky as I’ve ever seen," citing unprecedented levels of leverage and risk-taking. He singled out the artificial intelligence industry as particularly overvalued, arguing that while AI has potential, its current hype is "way over its skis." Singer also expressed alarm about the US government’s support for cryptocurrency, which he believes could undermine the dollar’s role as the global reserve currency.

Lessons for the Next Generation

Singer shared his thoughts on how young people can navigate the complexities of finance and life. He emphasized the importance of studying history, political science, and philosophy rather than specializing too early in business. "If you specialize too soon, you get this narrow, deep skill set, and you’re not equipped for the things that are actually happening in the world," he said. Singer believes that understanding the interconnectedness of markets, geopolitics, and human behavior is critical for success in finance.

A Passion for Life Beyond Markets

Despite the demands of his job, Singer remains passionate about life outside of finance. He enjoys skiing, hiking, and playing music—activities that bring him joy and help him unwind. While he may no longer have time to read fiction due to the demands of his work, he remains committed to his craft. "Rock it till you can’t do it anymore," he said, reflecting on his approach to life and business. For Singer, the combination of stress, risk, and reward is not just a job—it’s a way of life.