Paulson Joins Hedge Fund Gold Rush

Mar 19 2009 | 2:46am ET

For hedge funds, 2009 is starting to feel more like 1849.

Another major hedge fund is joining the gold rush: Paulson & Co. has bought a $1.28 billion stake in South African gold mining company AngloGold Ashanti. The New York-based hedge fund is now the second-largest shareholder in AngloGold.

Paulson bought its stake from Anglo American, the British mining conglomerate.

“We believe AngloGold Ashanti is one of the best-managed and undervalued of the major gold-mining companies,” John Paulson said.

Paulson made its name in 2007, when it rode the collapse of the subprime mortgage market to triple-digit returns. The hedge fund is also a major shareholder of Kinross Gold Corp., the Canadian mining company. Nor is Paulson the only hedge fund betting on gold: Third Point and Greenlight Capital have recently moved large portions of their assets into the precious metal.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...