Mon, Apr 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

John Paulson’s gold fund’s losses widen, down 23% in June (-65% YTD)

Tuesday, July 09, 2013

Komfie Manalo, Opalesque Asia:

Hedge fund manager John Paulson is under extreme pressure after his gold fund plunged 65% so far this year (-23% in June), after the yellow metal fell 12% that month on concerns that the Federal Reserve might scale back on its quantitative easing program, various media reported.

According to a report by the Reuters, it was unclear if the June sell off in gold was the primary reason for the 23% decline in Paulson’s PFR Gold Fund or if his bets on borrowings and derivatives also contributed.

Paulson’s gold fund manages an estimated $300m, roughly 2% of his total assets, using mostly his personal money. The gold fund is also Paulson’s smallest portfolio. At one point it managed almost $1bn, rose 35% in 2010 and was part of Paulson’s estimated $5bn income that year, says Reuters.

The report quotes John Brynjolfsson, managing director of global macro hedge fund Armored Wolf as saying, "Paulson’s impact on the gold market is dramatic. In particular his size alone, on the way in or way out. But one needs to look beyond his size alone because his positions are relatively widely publicised, and representative of how others are thinking, so thereby their impact get......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably