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

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of