Paulson Gold Fund Features Lockup, $10M Minimum

Nov 23 2009 | 6:14am ET

John Paulson aims to give investors in his new gold hedge fund big returns. But they’ll have to agree to part with their money for at least one year, and pony up at least $10 million.

Paulson & Co. is shopping their new fund to investors, both in meetings and with a prospectus, Reuters reports. The dedicated gold fund will debut on Jan. 1, and will invest in gold-mining companies, gold-related equities and gold derivatives.

The fund will charges 1.5% for management and 20% for performance. After a one-year lockup, it will offer biannual liquidity with 60 days’ notice. And while the $10 million minimum investment may seem steep, Paulson himself plans to invest 25 times as much in the new fund.

He’s also added a pair of gold experts to assist on the new fund. Victor Flores joins from HSBC, where he was a senior gold-mining analyst. Paulson also nabbed John Reade, who had left UBS to join Credit Suisse. At UBS, Reade was a senior metal strategist.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...