Launches & Closures Hedge Funds

Paulson to combine credit ops funds and introduce two new vehicles


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