While the losers in the on-going credit crunch have dominated the headlines, we've noted that there have been some huge winners as well. We're starting to read more about them. John Paulson's Paulson Credit Opportunities Funds, according to the New York Post, used asset-backed indexes and credit derivatives to make a huge short bet. It won, as several of Paulson's portfolios have booked massive gains. Others, like Ellington Capital Management, have made up for losses in credit funds with big gains in other funds. Then there's Highland's $51 million HFH Shortplus Fund, which is up more than 80 percent this year. Also, MKP Capital Management began to sell short certain asset-backed bonds last year and is now reaping the rewards. It's portfolio is up more than 30 percent.  

For more:
- here's the New York Post article [1]

Related articles:
- Credit crisis rolls on [2]
- KKR's move to cash in on crisis [3]
- Crisis takes toll on Lehman and Bear Stearns [4]