Billionaire John Paulson, the hedge-fund manager trying to
recover from losses related to bullion this year, posted a 13 percent decline
in his Gold Fund last month, according to a letter to investors.
The drop brings losses in the strategy to 54 percent since
the start of the year, the firm said in the letter, a copy of which was
obtained by Bloomberg News. The Gold Fund is the smallest strategy of the $19
billion money manager, with about $360 million, or 2 percent of assets, most of
it Paulson’s own money.
The firm said it has no intention of closing down the Gold
Fund and recommended investors stay invested as valuations provide a
“significant upside.” Paulson & Co. last week told clients it would start
reporting returns for the Gold Fund and the gold share classes of other
strategies separately to avoid taking away attention from positive performance
in other strategies, according to a person familiar with the matter told
Bloomberg.
Gold Explorers ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Gold Explorers Index.
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