One of John Paulson's largest funds, the Advantage Plus fund, lost 13 per cent in the first two weeks of June. The billionaire hedge fund manager, who made his fortune on a short bet against subprime mortgages, ironically is being crushed after a short seller issued a critical report on a Chinese forest company he owns shares in.

The Advantage Plus fund, one of the $38 billion firm's largest, has tumbled nearly 20 per cent this year after losing 13 per cent in the first two weeks of June. Part of the decline is attributed to shares of Sino-Forest Corp (TRE.TO) which plunged 82.50 per cent this month, an investor in the fund who is not permitted to discuss performance publicly said.