Saturday, 20 September 2014
Last updated 22 hours ago
Feb 11 2010 | 10:20am ET
Despite his unsurpassed track record, investors have proven wary of John Paulson’s new gold fund.
Paulson poured a quarter-billion dollars of his own money into the new vehicle, which debuted on Jan. 1. But clients have added only $90 million of their own to it.
The fund dropped 14% in January after the precious metal’s year-long rally ended last month.
Paulson & Co. burst onto the scene in 2007, producing triple-digit returns betting against the subprime market. It’s also posted consistently positive returns over the past two years. The New York-based firm’s main hedge funds are currently big investors in gold, with about 10% of its assets invested in the precious metal and related investors.
But some doubt Paulson’s commodities-trading skills, The Wall Street Journal reports. Others think they can do just as well investing in levered exchange-traded funds, which don’t feature a three-year lockup, $10 million minimum investment or 20% performance fee.
Others just think that it is an inopportune time to jump in feet first.
“It’s purely my negative view on gold in the short run,” Christopher Zook of CAZ Investments told the Journal. “I just am waiting for hopefully a better entry point.”
Still, it is early going for the six-week-old fund. The Journal notes that Paulson had trouble attracting investors to his credit fund in 2006, a year before his bets proved tremendously profitable.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.