Not every investment John Paulson makes turns to gold.

The Paulson & Co. chief—whose firm enjoyed triple-digit returns last year and has posted more, albeit more modest, returns this year—has cut the price on his old Hamptons estate by 13%. Paulson listed the seven-bedroom, three-acre Southampton, N.Y., estate for $19.5 million in April, two years after buying it for $12.75 million. But in response to a tepid market, realtors Prudential Douglas Elliman have cut the asking price to $16.9 million.

The 6.800-square-foot home features a glassed-in pool and sauna room.

Earlier this year, Paulson traded his old Southampton digs for a grander estate nearby. His knew lakefront Hamptons pied-a-terre, Old Trees, cost him $41.3 million, but features 10 acres, a century-old15,000-square-foot mansion, a pair of guest houses and staff quarters.