Hedge funds run by US manager John Paulson, one of last year's best performers and a short seller of UK banks, have bucked a trend of worldwide hedge fund losses by making returns of more than 19% this year in a rare glimpse into the performance of unlisted vehicles. One fund generated 589.62% last year in what is thought to be the largest dollar return in a year from a single hedge fund.

Investors said the Paulson Advantage Plus fund was one of the best performers so far this year, with a net return of 19.44% for the year to the end of August. The fund made 158.75% last year and, through a combination of investment gains and new capital, has grown from about $100m (€70m) at the start of 2007 to almost $9bn, Financial News Online can exclusively reveal.