John Paulson’s hedge fund, which a little less than a decade ago was the most desired place for buyside employment on Wall Street, is imploding.

Just days after the Post reported that the firm fired its heads of equity and credit trading amid freefalling P&L as the one-hit wonder has so far failed to repeat the success of his blockbuster subprime megatrade, amid shrinking AUM which has tumbled from $38bn in 2011 to under $10bn now (of which 80% is Paulson’ own money), today Paulson Capital took a decisive step to becoming a family office – or perhaps just shutting down – when, as Bloomberg reported the fund’s  gold and special situations hedge funds are returning client capital “as the firm narrows its focus.”