John Paulson has a big new bet

Billionaire hedge fund manager John Paulson is raising money for a new private equity fund, Bloomberg's Simone Foxman reports.Paulson's is lookingto raise $1.5 billion for the fund, calledPaulson Strategic Partners Fund, according to the report. Itwill invest in bankrupt companies and those going through restructuring or in need of rescue financing.Paulson's hedge fund was estimated to have lost $2.1 billion in 2015.In LCH Investments' annual ranking of the world's most successful money managers, Paulson fell from no.3 in 2014 to no.7 in 2015.Paulson & Co. made $15 billion betting against the sub-prime mortgage market in the years leading up to the financial crisis.Paulson isn't the only one look to profit fromfinancial distress.The Baupost Group, the $27 billion hedge fund led by value investor Seth Klarman, has been buying distressed bonds, while Oaktree Capital Group cofounder Howard Marks has said his firm is poised to take advantage of distress brought on by the fallingprice of oil.Hedge fund staff focused ondistressed debt are also expecting big pay packets.Read the full story over at BloombergJoin the conversation about this storyNOW WATCH: How hedge fund legend John Paulson built an empire off the 2008 financial crisis
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