John Paulson acknowledged during a conference call with Bank of America Corp. investment advisers and their clients that his flagship hedge fund had posted disappointing returns, while assuring them his firm hadn't faced an exodus of investors.

Bank of America had arranged Tuesday's call after a number of clients went to their advisers with concerns about Paulson's funds, a person familiar with the plans said. The bank's wealth-management arm aimed to give customers the chance to hear directly from Paulson, the person said.