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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.