Even as big-name investors like George Soros peel back their bets on gold, helping to send prices falling, John A. Paulson, who heads the $37.5 billion hedge fund Paulson & Company, has chosen to stay the course, according to recent regulatory filings that indicate he actually increased his bets on certain companies exposed to gold.
Gold, to be sure, has treated him well. Mr. Paulson netted $5 billion in personal gains last year thanks to his heavy bet. The hedge fund manager doubled down on the precious metal in recent years, believing that the dollar would lose value.
To implement that long-term bet, he created a gold fund, which invests in gold-exposed investments like mining companies, as well as a class of shares in all of his other funds denominated in the precious metal.
At a recent investor conference in Las Vegas, Mr. Paulson reiterated his belief that gold was not a bubble, according to notes from an investor who attended the conference. Mr. Paulson said owning gold would add to returns while also protecting against inflation. He said his funds were ready for such inflation, which he sees over the next three to five years, thanks in part to the quantitative easing policy of the Federal Reserve.
Mr. Paulson recently acquired more shares in AngloGold Ashanti, according to his most recent 13F filings, which reflect Paulson & Company holdings through the end of March. Mr. Paulson told investors that AngloGold Ashanti – the third-largest gold producer in the world and the largest single holding in his Advantage Fund – was the best managed gold company in the world.
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