For John Paulson, it is all about gold these days.
The billionaire founder of Paulson & Co., who has about 90 per cent of his net worth riding on the ups and downs of the precious metal, racked up a 13.24 per cent return in his Gold hedge fund in February, Institutional Investor reports.
As a result, the fund is down less than 1 per cent for the year after losing 12 per cent in January.
[Institutional Investor also has results for David Tepper’s Appaloosa Management hedge fund.]
The Paulson Gold Fund, launched in January 2010, managed about $900 million at year-end. It was up more than 35 per cent net last year. In addition, the gold classes of Paulson’s funds rose between 30 per cent and 45 per cent and outperformed the comparable cash classes by an average of 25 percentage points.
Meanwhile, Paulson’s other funds generated much smaller returns in February. Paulson Partners was up 1.64 per cent, and is up 4.01 per cent year-to-date; Advantage was up 1.62 per cent (1.87 per cent); Advantage Plus 2.25 per cent (2.79 per cent); and Recovery 3.53 per cent (4.46 per cent).
In 2010, Paulson’s funds generated more than $8.4 billion in gross gains before fees, about $6 billion of it in the dollar share class and the rest in the gold class. He finished the year with slightly less than $36 billion in assets under management.