Friday, 1 August 2014
Last updated 1 hour ago
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.