Paulson Funds Said to Further Cut 2012 Losses Last Month

John Paulson, the billionaire hedge-fund manager coming off record losses in 2011, further pared declines in his Gold and Advantage funds last month, according to two people familiar with the matter.

Paulson’s Gold Fund, which can buy derivatives and other gold-related investments, rose 13 percent in September as bullion rallied, cutting losses this year to 3.9 percent, said the people, who asked not to be named because the information is private. The Advantage Plus Fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, gained 3.6 percent last month, reducing losses since the start of the year to 14 percent.