NEW YORK ( TheStreet ) -- Discount isn't dead. Not judging by Wednesday's trading session, at least, when shares of dollar-store retailers rallied, with some names reaching fresh 12-month highs. Family Dollar Stores' ( FDO ) stock, for one, hit a new peak of $41.83 Wednesday afternoon, before falling back some, while Dollar General ( DG ) notched a 52-week high of $30.20. Shares of Fred's undefined, Dollar Tree ( DLTR ) and 99 Cents Only Stores ( NDN) also inched higher Wednesday, even as the rest of the retail sector ended mostly in the red. Earlier this week Paulson & Co., the hedge fund run by famed subprime short seller John Paulson, purchased 6 million shares of Family Dollar at $36.61 apiece, for an outlay totaling $220 million.