Hedge fund manager John Paulson said on Tuesday he still sees compelling long-term returns in equities even after their sharp run-up this year, while holding no short positions in the credit markets.

"Today our net long exposure is perhaps the highest it has ever been in our portfolio," Paulson said during a luncheon presentation at the Japan Society.

"We still find a lot of compelling long investments on the equity side," he said, citing specifically Bank of America , U.S. cable-television giant Comcast Corp , and Germany's HeidelbergCement AG .

Paulson said that at the end of 2008 he viewed the credit correction as having run its course. By April he had poured cash back into the sector.

"That is why we don't have any shorts in credit," he said.

Paulson, who has run his own hedge fund since 1994, has become a star investor after correctly predicting the sub-prime credit crisis in 2007. That reaped him a $3 billion profit.