Alan Greenspan to advise hedge fund Paulson & Co

Mumbai: Former Federal Reserve chairman Alan Greenspan will advise hedge fund Paulson & Co Inc, its manager John Paulson said in a statement.

Paulson, a New York-based investment management firm, which earned billions of dollars last year by betting against the housing market, said Greenspan would advise it on the global economy for an undisclosed amount of money.

Greenspan, who can still move financial markets, becomes the latest former government official to work in the fast growing $2 trillion hedge fund industry. Former treasury secretaries Lawrence Summers and John Snow advise D.E. Shaw and Cerberus Capital, respectively.

Greenspan will provide ongoing advice to Paulson's investment management team by sharing his perspective on issues affecting the financial markets. This will be an exclusive arrangement, and Greenspan will not enter into a similar consulting arrangement with any other hedge fund while he is working with Paulson & Co. Inc, the company said in the statement.

"Few people, if any, in the world have the breadth of experience with, and depth of understanding of, global financial markets as Dr. Greenspan. Anticipating the direction of the economy, and assessing the potential for and severity of a US recession, are fundamental in formulating current investment strategy. Dr. Greenspan's position as chairman of the Federal Reserve Board for 18 years, through multiple market cycles, gives him a unique perspective from which to help our investment management team make critical decisions." John Paulson, president of the firm, said.

"Paulson & Co. Inc. is one of the world's leading hedge funds. I look forward to adding my perspectives on the global economy to that of Mr. Paulson and his team," Greenspan said.

Paulson & Co has $28 billion in assets under management.