Paulson Sells $2 Billion Worth Of Gold

Nov 15 2011 | 11:29am ET

Paulson & Co. has cut its most successful holding of the year and boosted one of its least successful.

The New York-based hedge fund, which has been the most enthusiastic investor in gold, sold off one-third of its holdings of the precious metal, it said in a regulatory filing yesterday. The sale of 20.3 million of its 31.5 million SPDR Gold Trust exchange-traded fund shares reduces Paulson' gold holdings by nearly $2 billion.

The sale could be linked to redemptions: Investors filed withdrawal requests totaling about $2.4 billion.

Gold-watchers were skeptical that Paulson had lost its taste for gold: "We doubt Paulson's gold fever has run its course," ANZ Research said.

On the other hand, Paulson added to its holdings of one stock that has not been kind to it: Bank of America. The hedge fund boosted its stake in Bank of America by 6.4%, although it cut its stakes in other financial stocks, including Citigroup and Wells Fargo.

Other hedge funds are less sanguine about BofA: Appaloosa Management, Kingdon Capital Management, Highfields Capital Management and Lansdowne Partners all cut their holdings in the bank—to the bone. All four sold off all of their shares in the bank. Other hedge funds merely reduced their holdings, including Carlson Capital and Odey Asset Management.

But Paulson isn’t alone in backing BofA. Berkshire Hathaway and hedge fund Fairholme Capital Management both added to their holdings of the bank.


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...