Paulson's Gold Fund Loses 14% In One Month
2010 is not proving to be an auspicious start for the Paulson & Co. multi-billionaire (or any other hedge fund manager for that matter). Bloomberg has disclosed that John Paulson's recently launched gold fund has dropped 14% in January. Hopefully massive long exposure in Bank of America stock (anecdotally, and somewhat imprudently, unhedged with CDS) has made up for the disappointing beginning.
Hedge-fund billionaire John Paulson’s gold fund lost 14 percent in January, its first month of operation, two investors said.
The fund invests in mining companies and bullion-related derivatives, according to the investors, who asked not to be named because the fund is private. Paulson’s $32 billion Paulson & Co., based in New York, bought gold companies in its other funds as well as bullion rose about 24 percent in 2009.
While we are confident that as fiat-destruction accelerates, Paulson will ultimately be proven right. In the meantime, we won't feel too bad for the hedge fund manager.
Paulson earned an estimated $2 billion in 2008, according
to Institutional Investor’s Alpha Magazine. His Credit
Opportunities Fund soared almost sixfold in 2007 on bets that
subprime mortgages, or loans made to homeowners with bad credit,