Hedge fund guru John Paulson is dialing back risk in his portfolios, and says he sees a 50% chance that the euro currency will unravel, Bloomberg reports.

In a conference call with clients, Paulson said that he expects sovereign yield spreads to widen in Europe, and that a eurozone breakup could happen in anywhere between three months and two years from now, Bloomberg said, citing a person who was on the call.

Paulson also said he has reduced risk in some of his firm’s funds. Back in January, his Credit funds had a net exposure of 27%, while his Advantage funds were at 32% and his Recovery funds were at 55%. Now, the Credit funds are at -9%, the Advantage funds are at 11%, and the Recovery funds, which focus on assets Paulson believes will benefit from a long-term economic advance, are at 31%.