The Rumors Were True: Paulson Liquidates A Third Of His GLD Gold Share Class; Buys More Bank Of America And Capital One

Tyler Durden's picture

Well, he may not be liquidating, and he may be telling others he has experienced barely any redemptions, but Paulson's gold share class, represented entirely by the fund's GLD holdings would beg to differ: as of September 30, Paulson's total holdings of GLD were down by a third from 31.5 million shares or $4.6 billion at the end of Q2, to 20.2 million or $3.2 billion. And as is well known, GLD is not an actual investment for Paulson, but merely a representative asset class for those who opt to have their fund holdings represented in gold (the smart ones) instead of in dollars. Indicatively the only Paulson & co investors who made any money, or at least did not lose much, were those who opted for a gold share class. Either way, it is now safe to assume that at least a third of the fund has been permanently redeemed, further confirmed by the drop in the AUM from $29 billion to $20.7 billion as per the actual filing. But wait, there's more: while Paulson was busy selling across the board, in the process liquidating all of his JPM holdings as well as his positions in Comcast (no CNBC for you), Savvis, NYSE Euronext and State Street, and following in Tepper's footsteps in selling across the board, the former Bear trader did what all other allegedly doomed institutions do and added to, you guessed it, the biggest loser Bank of America, increasing his position by almost 4 million shares... even as the total value of his 64 million BAC stake, which closed Q3 at the same price it is today, dropped by $269 million! And that's why he is a billionaire and you are not. At least we know who Tepper was selling to. But that's not all: Paulson also added 1.1 million share to his CapitalOne position, bringing the total to 22.2 million shares, even as the total value of his revised position dropped by $210 million to $880 million. And so forth. Some other names in which he took brand new stakes in (picture that: he did not spend all of Q3 selling) in Motorola Mobility, Nalco, Cephalon, AMC and a bunch of irrelevant others. So to all those who are now in the same place they were in 2008: tough, but at least your fees made JP into a multi-billionaire. Congratulations.

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slaughterer's picture

Whale watching the misled gold dumper


Richard Chesler's picture

The Dick Bovine school of trading.


Pladizow's picture

US Gov to Paulsen: Buy BAC or we'll "revisit" that Abacus/Goldman shit!

LongBalls's picture

For all we know he could be taking his GLD money and buying real gold.

Ura Bonehead's picture

No.  Can you say margin calls?  When you're a leveraged hedgie you sell what you can, not what you want when the margin clerk comes callin'.  Selling GLD, at least you get to book SOME profits for the qtr.

tiger7905's picture

Some comments by a US trader on gold.

Says paper to physical is now 110 to 1.

The Big Ching-aso's picture



Shit, does he and Celente take the same hallucinogens?

slaughterer's picture

Because he can... and BAC represent a better ROI /LOL /sarc

gmrpeabody's picture

Maybe it's a George Costanza thing..., you know, just do the opposite!

SirIssacNewton's picture

JP is laughing all the way to the bank....just not the ones he's invested in......

monopoly's picture

BAC and Capitol One. I cannot believe that. This is a really smart guy. He now owns Countrywide and Merrill. Oh my. I think I will stay with my simple thinking and not go there.

JohnG's picture

What's in yerrrrr wallet?

Mines filled with 2/3 gold, 1/3 silver (bullion and miners.....) 


monopoly's picture

I am right next to you JohnG. And a few miners to sweeten the pot..

LibertyIn2010's picture

I smell another taxpayer government bailout of the TBTF banks coming soon

YesWeKahn's picture

Throwing bad money after good?

dizzyfingers's picture

...isn't it by now bad money after bad?

vegas's picture

Not sure this was the smartest move I've ever seen. But hey, that's why we have markets. I'm sure he thinks BAC is TBTF so WTF. The Bernank put in all its glory is on display for the world to see. When this turd gets liquidated at 0.02 I think I'll be snickering and wondering again: WTF - why?

Number 156's picture

Paulson is TBTF, the taxpayer will essentially be bailing out his positions.


slaughterer's picture

So, the lesson from this quarter's whale watching: Buy BAC and HFC.    WTF???

ItsDanger's picture

Looks like a classic case of doubling down. Sell the winners and pile onto the losers.  This will end badly for them. Redeem everything now.  


Steaming_Wookie_Doo's picture

I believe the correct term would be double-up and throw up. But I suppose anyone who's stayed with Paulson this year will get what's coming to them.

Johnny Yuma's picture

Wow, what a rookie move, averaging his losers. It'd be very interesting to see his entire position statements as this is his long only positions. 

Silverhog's picture

Is it April 1st?

Darth..Putter's picture

He was directed to do so by the Empire

jcaz's picture

How Corzine-like.....

The Deleuzian's picture

Paper gold...Who cares!!

bank guy in Brussels's picture

Capital One ... astonishing to me they have that quite insidiously double-meaning advertising slogan:

'What's in YOUR Wallet?'

Always suggested to me that the bank wanted to TAKE what was in your wallet.

Commercials seen in the UK as well as the US, whole bunch of them on YouTube. One of them even with pirates, Bluebeard-style, 'Aaargh, what's in your wallet?'

Fits some banks well.

jmcadg's picture

Transfer from one tool to another by another. Paulson is no god, he's just another fuckshite.

Would have been better changing GLD in Cobra!

DosZap's picture

No one as smart as he is, does this without a backstop.No one.

A Man without Qualities's picture

Maybe the backstop is they promise not to bring charges against him for the ABACUS deal?  


CPL's picture

Maybe he just bought some of the real deal.  Doesn't make sense holding a piece of paper that can't deliver and he knows it.


Fuck paper

Fuck equities

Fuck bonds

Fuck tbills.


Expensive wallpaper, gold however makes an expensive paper weight.

css1971's picture

Has he looked at the 30 year chart of BAC? It hit a wall in 08 at high speed and is just bouncing down the road to zero. "It's dead Jim." The FED keeping it alive?

I know. Contrarian. Billions etc.

chump666's picture

Trade war about to go hot on Obama "China gaming the system".  USD bid, stocks down and Paulson should not underestimate China's liquidity issues. China goes, should take out the idea of a QE3 stock bull run.

Obama "gaming" quote

ZH, check wires Brazil is also tag teaming with US on a China trade war beatdown.  Tasty.

eddiebe's picture

One for the banksters and the ink jets

Missiondweller's picture

I just don't see how BAC survives in its present form.


I'd love to hear how much their deposits have decreased in the last 60 days.

CPL's picture

Too bad earnings aren't due.  Should be able to ferret out something from that unless they start double counting accounts.


Would not surprise me in the least if they did.

eddiebe's picture

Paulson sez: If you can't beat them join them.

Seasmoke's picture

selling the winners to make up for the losers........eventually leads to the walls are closing in on paulson


How about selling your losers and doubling up on your winners? 

CPL's picture

Hey don't say that...far too much sense.  Paulson might read it and then things start moving again.

Steroid's picture

How to make a millionaire ...from a billionaire!

GtownSLV's picture

Reeks of desperation!

DaBernank's picture

I'm reminded of the Mr. Show sketch, "more money means better" -- So, because he's a billionaire, Paulson's better than you!

But seriously, paper gold is better than the paper nothingness of BAC... He's gone full retard.

Long-John-Silver's picture

BWAhahahahahahahahaha! AaaaRrrrrgggggg mates! He's made a fools move, prepare to cut down his rigging and board that bastard.

CPL's picture

Yarrr, it's drivin me nuts!


Best.  Punchline.  Ever.