This can’t be a huge surprise, given the huge fall in gold, though it might make one wonder what the point of a “gold fund” is.
John Paulson’s gold fund fell 12% in January, according to Dealbook. That compares to a 6% decline in january for the actual metal itself.
So basically Paulson’s fund is leveraged gold, which is probably something that investors could accomplish at lower fees on their own.
Now what will be very interesting to see will be how various momentum managers, many of whom have owned gold, did what they did with gold in their next 13-Fs.