Paulson Feeling Heat as Gold Fund Dropped 65% YTD

Hedge fund manager John Paulson’s gold fund has lost 65 percent of its worth so far this year after the portfolio declined 23 percent last month, two people familiar with the fund said on Monday.

Gold had been one of the billionaire investor’s winning bets a few years ago, but not this year. His investments in gold and gold miners have suffered double digit losses for the past three months.

In June, gold tumbled 12 percent in the wake of fears the Federal Reserve might taper its economic stimulus by cutting monthly bond purchases. It is unclear how a 12 percent drop in the price of the precious metal translated into a 23 percent fall in the fund in June, and whether it is the result of the bet having been leveraged up through borrowing and the use of derivatives


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze

centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu