The investor told the Financial Times that the fund's founder John Paulson made the announcement via a conference call, with official details of the plans due to be announced next month.
Around $20 billion is managed by the investment vehicles, which have a primary focus on merger arbitrage, distressed debt and event-driven strategies.
Paulson & Co has been in the spotlight recently after the Securities and Exchange Commission (SEC) charged Goldman Sachs with fraud in relation to allegations that the bank worked with the hedge fund to set up a subprime-mortgage securities package that was designed to fail.
The SEC alleged that Goldman Sachs encouraged its other clients to invest in the vehicle while Paulson & Co bet against it.
Last week, Fox Business Network reported that Goldman Sachs is seeking a settlement agreement with the SEC to bring the case against it to an end.
By Tony Aynsley