His first American Champion in racing was Estrapade, the 1986 Eclipse Award winner as American Champion Female Turf Horse. He owned Arazi, the 1991 European Horse of the Year for whom Sheikh Mohammed paid him $9 million for a half interest. He also owned the Champion filly Azeri, although he did not live to see her compete, but his son, Michael, campaigned Azeri over three championship seasons for Paulson's trust. Paulson's most famous American horse was U.S. Racing Hall of Fame inductee, Cigar, a darling of race fans and the media alike who captured the Breeders' Cup Classic, the first Dubai World Cup, and was voted Eclipse Award as American Horse of the Year in 1995 and 1996 while winning a record 16 straight races.