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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.