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From Kirsten Bischoff, Opalesque New York:
John Paulson's gold fund is anticipated to launch in January 2010 with $250m of the managers own money seeding the strategy. With this announcement has come intense analysis on hedge fund investments in the precious metal as well as its price, surging and then fluctuating over the past few days.
According to Reuters, in addition to the gold fund Paulson will open in January, "combined gold and gold-related investments made up more than 46% of his firm's holdings at the end of the second quarter of this year" (Source.
Other well-known fund managers have been focused on gold as well. Bloomberg reported two-year old, commodities hedge fund Clive Capital return 4% last month led by gains in gold and has performed so well and grown so quickly ($4bn), manager Chris Levett has closed it to new money. The WSJ also reported in November that Greenlight Capital's David Einhorn has taken large positions in gold.
The precious metal achieved a record price on December 3rd ($1,226.56/oz) and has since pulled back slightly. Investors are simultaneously seeking out and wary of "the next bubble" and many haves debated what is driving gold's meteoric rise, and when exactly it will end.
"Short term, you might be hammered [investing in gold], but long term, it is a...................... To view our full article Click here
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