Where there are big losers, there are always big winners, and in the sub-prime mortgage market, Paulson & Co. continues to hit the jackpot.

The New York-based hedge fund, which last year set up its Paulson Credit Opportunities Fund specifically to take advantage of the storm ravaging mortgage markets, is up an eye-popping 129.22% in the first half of 2007, MarketWatch reports. The fund rose an astonishing 39.95% in June on bets against the sub-prime market, as that very same market sunk a number of hedge funds, most notably one managed by Bear Stearns.

It’s been a top-notch year all-around for Paulson. While nothing can quite compare with the killing it is making in the sub-prime market, both its flagship fund and its event-driven offering are up more than 25% this year. The event-driven fund rose 10.16% last month—a bad one for many event-driven managers—and is up 29.29% in 2007, while its flagship, a merger-arbitrage fund, is up 27.72% in the first half after returning 6.15% in June.