Paulson & Co made the disclosure in a letter to its investors.
In his letter Paulson wrote, "Citigroup gained 43% 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."
"We are very excited about the outlook for our funds," Paulson said, adding that it expected them all to outperform industry benchmarks in 2011 thanks to investments in restructurings and assets at ‘deeply distressed prices".
In his letter the fund manager also wrote that that employees now account for around 42% of the firm’s assets, with around $14.9bn invested.
Paulson has reinvested all of his gains from fees "since inception", the letter said.
Paulson also expects the US economic recovery to accelerate this year thanks to the extension of the tax cuts agreed on by Congress and The White House late last year.
Paulson sold almost 83m shares in Citi in the third quarter of last year, according to the latest filings with the Securities and Exchange Commission, but still had 424m shares in the bank.
