Hedge fund Paulson & Co maintained its stake in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust, in the second quarter, while Soros Fund Management LLC sharply boosted his investment in gold mining stocks.
Legendary investor George Soros nearly doubled his ownership in a U.S. gold mining companies ETF and initiated new stakes in other gold producers, suggesting the big names in hedge funds continued to have confidence in the yellow metal.
Investors pay close attention to the quarterly filings by notable fund managers because they provide the best insight into whether the so-called smart money has changed its sentiment toward gold as a hedge against inflation and economic uncertainty.
New York-based Paulson & Co, led by longtime gold bull John Paulson, owned around 10.2 million shares in the ETF worth $1.31 billion on June 30, a filing with the U.S. Securities and Exchange Commission showed on Thursday.
That represents a gain of around $45.3 million as the price of gold climbed nearly 3.5 percent in the second quarter. In the first quarter, gold posted a gain of 6.5 percent as funds added gold back to their portfolios after aggressively selling the yellow metal last year.