Gold's Drop Hits Paulson Flagships, Gold Fund Down 47%

May 7 2013 | 11:53am ET

The precipitous drop in gold prices last month put an abrupt stop to Paulson & Co.'s incipient turnaround.

The New York-based hedge fund's flagship strategies fell in April, and its Gold Fund is down by almost half this year, according to published reports. All three were hit hard by gold's 7.8% drop last month, which included the precious metal's worst two-day drop in more than 30 years.

Paulson's Advantage Fund fell 0.9% in April to cut its year-to-date gain to 2.6%. The more highly-levered Advantage Plus Fund lost 0.7% and is up 3.9% on the year.

Paulson's Gold Fund plummeted a stunning 27% on the month. That strategy, which manages $500 million, primarily of firm founder John Paulson's own fortune, is down 47% on the year.

Gold's swoon also hit the gold-denominated share classes of Paulson's winning funds: Only the Recovery Fund's gold shares enjoyed gains last month, as its dollar share class surged 6.6%. It is up 22% on the year.

Paulson's merger-arbitrage Partners Enhanced Fund rose 3% last month and is up 14% on the year, and its Credit Opportunities Fund returned 1.3% to hit 12% on the year.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note