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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note