It's been a comeback year for John Paulson

It's been a comeback year for John Paulson. After wrong-way bets on the U.S. recovery, the euro crisis and gold had helped cut assets by about half from the 2011 peak, his main hedge funds are posting double-digit returns. The New York-based firm's Advantage strategy, which suffered record losses in 2011, is up 30 percent this year through November, and the Recovery fund surged 55 percent, according to two people briefed on the returns, who asked not to be identified because the information is private. Paulson, 57 and best known for making $15 billion in 2007 betting against subprime mortgages, is rebounding with prescient bets on companies in takeovers, a strategy known as merger-arbitrage where he got his start as a trader, and by investing in stocks that surged as global central bank policies propped up markets. Read more: (VIEW LINK)