Hedge fund manager John Paulson, known for huge gains followed by heavy losses in some of his funds, extended his portfolios' winning streak in September, leaving all of them with double-digit gains for the year, a person familiar with the numbers said on Monday.
Bets on insurers, health care, real estate and hotels all helped Paulson's biggest funds deliver some of the industry's best gains, according to the source, who is not permitted to speak about the private funds publicly.
The average hedge fund is up about 4.5 percent this year, research firm Hedge Fund Research reported, while the Standard & Poor's 500 Index is up 18 percent after gaining 2.6 percent in September.
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Paulson told investors that his Recovery Fund gained 4.2 percent in September and is up 37.8 percent for the year, while the Paulson Enhanced fund gained 3.1 percent and is up 25.6 percent for the year, the source said.