His portfolio has been heavy on disappointments.
"The biggest loss was Sino Forest. We took a nasty hit on it, but there was also other losses," said Paulson during the investor call, which Reuters heard portions of. ...
Paulson said he cut the net long exposure from roughly 81 percent to about 60 percent, and plans to cut it more. "Eighty-one percent was way too high. We cannot operate the fund at that level," he said. "I'd like to bring the risk down further to about 50 percent."
As a long-time owner of large financial companies such as Bank of America (BAC.N) and Citigroup (C.N), Paulson called said the former -- his sixth largest position at the end of the first quarter -- was "somewhat of a disappointment.
He still likes financials, mentioning Capital One and Wells Fargo as names that he's long due to their having less mortgage exposure. And he's short the euro. Which is up 1.2% today.
Paulson: Our bets were too aggressive [Reuters]