Paulson Won't Add To Gold Investments

Nov 22 2013 | 11:46am ET

For years, and in the face of huge losses, Paulson & Co. founder John Paulson has been arguably the biggest of the gold bugs. Even as his dedicated gold fund, which manages primarily his own capital, posted double-digit declines, the hedge fund billionaire stuck by the precious metal, convinced that a coming period of inflation would reward his faith.

Paulson still isn't giving up on gold—even as his PFR Gold Fund has lost 63% this year after falling a further 1.2% in October. But his faith has been shaken a bit.

Paulson told investors that he won't be putting any more of his own money into the Gold Fund because he is not sure when inflation will begin to rise, Bloomberg News reports. The fund will maintain its positions in gold stocks, but it will let its options on the metal expire, Paulson said at the firm's annual meeting in New York.

Paulson opened his bet on gold in 2009 as a hedge against inflation, which he expected would soar due to central-bank quantitative easing programs. He even created gold-denominated share classes of his other hedge funds. But the precious metal is set to suffer its first losing year in more than a decade, down 26% this year, and the Gold Fund has been the only black mark in what has otherwise been a fabulous year for New York-based Paulson, whose other funds are up by double-digits.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.