The collapse of the mortgage market has made John Paulson an extremely rich man, but it may be costing him in the sale of his old Hamptons getaway.

The Paulson & Co. founder, who bet big against the subprime mortgage market last year and rode the wave to triple-digit returns, making his firm one of the biggest hedge fund managers in the world, has cut the asking price for the seven-bedroom digs in Southampton, N.Y., by another $3 million, just months after reducing it by $2.6 million.

The 6,800-square-foot “cottage” on three acres—and featuring an enclosed pool—is now listed for $13.9 million. Paulson paid $12.75 million for the home two-and-a-half years ago.

Earlier this year, the hedge fund billionaire decamped to even grander digs nearby, a 10.4-acre estate known as “Old Trees.” The new lakefront home cost Paulson $41.3 million.