A hedge fund run by US manager Paulson made a 40% return in June betting against securities backed by sub-prime mortgages, and said it expected to make three times as much money again from the sector, as credit ratings agency Standard & Poor's warned of continued turbulence.

The return for last month took Paulson's credit opportunities fund net return for the year to date to 129%, according to figures from data provider Bloomberg. The returns helped the firm treble its assets under management to $15bn (€11bn) in the past 12 months.