John Paulson is a billionaire many times over who made a massive amount of money for himself and his clients during the financial crisis, betting against the housing market. Since then, things have gone less swimmingly for J.P. and the people whose capital is tied up in Paulson & Co., to the extent that one might wonder aloud why the hedge-fund manager hasn’t just packed up his things and gone home (to his 28,500-square-foot town house). In 2011, Paulson’s ironically named Advantage Plus fund suffered a 52 percent decline, its worst in the firm’s 17-year history. And, with the exception...