John Paulson launches health-care fund

Hedge-fund manager John Paulson
David A. Grogan | CNBC

Billionaire investor John Paulson is looking to make more money on health care.

Hedge fund firm Paulson & Co. is launching the Paulson Long/Short Fund to initially focus on health care, pharmaceutical, and related technology and consumer sector investments, according to a letter sent to clients obtained by The firm, which runs approximately $20 billion overall, is seeding the fund with $500 million.

Guy Levy, Paulson's health-care expert, will be portfolio manager of the new fund, according to the communication.

"Guy's talent and expertise in health care, pharmaceutical and related sector investing have added significantly to our performance over the past five years, giving me confidence in his abilities to lead this new fund," John Paulson wrote in the letter.