Guru Paulson's four funds go into reverse

John Paulson, the US hedge fund guru who has made billions betting against American and British banks, may be mortal after all.

Industry figures reveal that all four of his funds lost money in February, a rare bad month.

Paulson Advantage fell 0.2%, Paulson Credit Opportunities 0.9%, Paulson Enhanced 1.5% and Paulson International 0.4%.

They are all still up this year, but industry watchers are keen to see if March is also bad for a man who has made few mis-steps since the credit crunch began.

He is reckoned to have made more than £300 million since September by short-selling Lloyds Banking Group alone.

His total profit from shorting the UK's bank sector - selling borrowed shares and buying them back after the stock falls - is more than £600 million.

But with bank stocks down more than 90%, he is lowering his exposure.

His short position against Lloyds is below 0.25%, suggesting he thinks banks will grow, or is cashing in on the assumption they cannot fall any further.

Said Leigh Goodwin of Fox-Pitt Kelton: "They have called the market right."