Bloomberg News

Paulson Said to Tell Clients He Wouldn’t Add More to Gold

November 21, 2013

Hedge-fund Manager John Paulson

John Paulson, president of Paulson & Co., started his foray into gold in early 2009, betting that bullion would rise as governments printed money to revive their economies following the 2008 financial crisis. Photographer: Amanda Gordon/Bloomberg

Billionaire hedge-fund manager John Paulson told clients he wouldn’t personally invest more money in his gold fund because its not clear when inflation will accelerate, according to a person familiar with the matter.

Paulson, who has been betting that gold would rally as a hedge against inflation as central banks flood the global economy with money, has lost 63 percent year-to-date in the PFR Gold Fund, said the person, who was briefed on the returns and asked not to be identified because the information in private. The fund, which has shrunk to $370 million, with most of that John Paulson’s own money, fell 1.2 percent in October, the person said.

The hedge-fund firm will maintain the fund’s positions in gold stocks and let options related to bullion expire, Paulson said at the firm’s annual meeting yesterday in Paulson & Co.’s New York office, according to the person.

Armel Leslie, a spokesman for $19 billion Paulson & Co. with WalekPeppercomm, declined to comment.

To contact the reporter on this story: Kelly Bit in New York at kbit@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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