Paulson fund down nearly 50% on wrong recovery call

One of legendary hedge fund manager John Paulson's flagship portfolios is down almost 50% in 2011.

Paulson, who made billions betting on a collapse in US house prices, has been hit badly by backing a booming economic recovery which has not materialised, the Telegraph reports.  Calls the US economy and housing market would bounce back strongly have contributed to one of his flagship funds being almost 50% down for the year so far. Paulson & Co, his New York-based hedge fund with $30bn (£19bn) under management, has told clients its Advantage Plus fund dropped almost 20% in September, leaving it off 46.73% for the year, sources told Reuters. In comparison, the average hedge fund lo...