Paulson Gold Fund Falls 13% In May, Down 54% In '13

Jun 11 2013 | 12:19pm ET

Earlier this month, Paulson & Co. said it would restrict the distribution of its Gold Fund's performance—and for good reason.

The $360 million fund—Paulson's smallest—fell a further 13% in May. The fund, which manages primarily firm founder John Paulson's own fortune, is down 54% this year.

Despite the huge losses, which follow a 25% decline last year, New York-based Paulson urged investors to stick with the gold fund, noting that valuations offer "significant upside." It added that it would not close the fund, which it has renamed the PFR Gold Funds, using the initials of Paulson and his gold specialists, Victor Flores and John Reade.

Paulson has been a gold bug for years, arguing that inflation will soar when the Federal Reserve begins to cut back on its quantitative easing program. But the precious metal last month entered bear-market territory for the first time in a dozen years as the Fed's bond-buying continues unabated.

Paulson, which allows investors to buy gold-denominated shares of all of its funds, said earlier this month that it would stop reporting the gold funds' results to all investors, complaining that their struggles were overshadowing strong returns by its other, larger products.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

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.

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.