Paulson Credit Opportunities Funds is having a house party of sorts. The New York-based hedge fund is already making money on its red-hot bet that the housing market in the Big Apple will continue to cool off. According to The New York Post, Paulson wrote investors in July that it intends the capitalize on the gloom over the former real estate boom, with the hopes that as things get worse for mortgagees unable to pay, returns will get even better for investors.