John Paulson, the hedge-fund manager who amassed a fortune by betting against US mortgage markets, increased his stake in Bank of America Corp. in the first quarter.

His hedge fund, New York-based Paulson & Co., bought 16.8 million shares of the Charlotte, North Carolina-based bank and held 167.8 million shares as of March 31, according to a filing with the US Securities and Exchange Commission yesterday.

BofA stock closed at $16.35 yesterday.