John Paulson massively increases his gold position

We already knew that John Paulson had a long gold position when he took an 11% stake in AngloGold Ashanti but according to MarketFolly who studied John Paulson & Cie SEC fillings, the hedge fund has about half of all their assets in gold and gold related stocks:

Some New Positions by the end of March 2009:
  • SPDR Gold Trust (GLD)
  • Gold Fields (GFI)
  • Gold Miners ETF (GDX)
  • Anglogold Ashanti (AU)
(by % of portfolio):
  • SPDR Gold Trust (GLD): 30.37% of portfolio (position: 1)
  • Gold Miners ETF (GDX): 6.81% of portfolio (position: 5)
  • Kinross Gold (KGC): 5.87% of portfolio (position: 6)
  • Gold Fields (GFI): 2.21% of portfolio (position: 11)
Here's MarketFolly's commentary:
The first major move that everyone will be talking about is Paulson's big entrance into gold. His position in the Gold Trust (GLD) is brand new and is brought up to a whopping 30% of his portfolio. Now, there are indeed a few caveats with this move: Paulson & Co have said themselves that they have done so as a hedge, as they now own well over 8% of this exchange traded fund (ETF). Their hedge funds have a share class that is denominated in gold (instead of in US dollars or Euros). Still though, that's quite a large hedge to have. Not to mention, Paulson also has a copious amount of gold miners now littered throughout his equity portfolio. Previously, we had posted up when he started his large stake in Anglogold Ashanti. Now though, he has boosted his stake in Kinross Gold (KGC) and he has also started new positions in Gold Fields (GFI) and the Gold Miner ETF (GDX). Gold is clearly the name of the game for Paulson at present. And, such a massive position in gold and gold miners has to be for more than merely a hedge.
Obviously, it's good news for all the gold holders to have someone with such a the track record as John Paulson on their side.

It's also very interesting to see that they now have a gold denominated share class!

Also as of interest: John Paulson Starting Real Estate Recovery Fund

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