Closely followed hedge fund manager John Paulson, who famously bet against the subprime housing market in 2007, had a disastrous year during a volatile 2011 with some of his funds falling 30 to 50%.
This year his Advantage funds, which invest heavily in gold, are in the red again.
His Paulson Advantage and Paulson Advantage Plus funds ($8.5 billion AUM) have a portfolio comprised of about 25 per cent in gold bets and both are down in the high single digits, according to the Post’s report.
One investor told the newspaper if it weren’t for the gold investments Paulson would have been up 4 per cent in the first quarter.
What’s more is Paulson’s huge bet on South African mining company AngloGold Ashanti, which he has a 9% stake in, is down 20% this year.