Hedge Funds

Paulson adds a new credit vehicle

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New York-based Paulson & Co. recently rolled out a new opportunistic credit fund managed by founder John Paulson and co-portfolio manager Paolo Pellegrini.

Paulson Credit Opportunities is initially planning to short the subprime mortgage sector, but it can make long and short bets across the credit markets.

Prior to founding the firm in 1994, Paulson served as a general partner at Gruss Partners and as a managing director in mergers and acquisitions at Bear Stearns. Pellegrini joined Paulson as an analyst in 2004 from Mariner Investment Group, where he specialized in CDOs.

Paulson specializes in merger, event arbitrage and