Thursday, 25 December 2014
Last updated 1 day ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.