Launches & Closures Hedge Funds

Paulson to combine credit ops funds and introduce two new vehicles

by

With most of his subprime gains behind him, John Paulson is combining two of his high-flying short credit funds and plans to introduce two more to profit from the shifting credit and housing markets.

Paulson & Co., which manages a total of $35 billion, is combining its two credit opportunity funds, possibly as early as September. Paulson Credit Opportunities was launched on July 1, 2006, with about $140 million. Levered as much as 12 to 1, that fund increased nearly sixfold in 2007 as the subprime mortgage market collapsed. The fund now manages about $10.5 billion, according to an