Gold slump hits hard on John Paulson
According to reports, about $328 million was shaved from his net worth on this bet alone when gold dropped 4.1 per cent on Friday.
Gold's nosedive hit billionaire investor John Paulson the most as he lost more than $300 million on Friday.
According to reports, about $328 million was shaved from his net worth on this bet alone when gold dropped 4.1 per cent on Friday. Gold share classes account for about 85 per cent of the $9.5 billion Paulson has invested across his hedge funds.
Gold has entered a bear market after falling more than 20 per cent since August 2011, bringing more bad news for Paulson, who has struggled with poor returns for the past two years.
However, John Reade, a partner and gold strategist at Paulson & Co, said the recent decline in gold prices has not changed our long-term thesis as we started investing in gold at $900 in April 2009 and while it's down from its peak to $1500, it's up considerably from our cost.'
Gold tumbled and entered a bear market after falling more than 20 per cent since August 2011, bringing more bad news for Paulson, who has struggled with poor returns for the past two years.
For months Paulson's has stuck by his biggest single investment in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, where he owned 21.8 million shares at the end of the fourth quarter.
But clearly other investors became jittery in February when a 3.8 percent price drop was accompanied by an outflow of 70 tons, more than 5 percent of the ETF's holdings. This marked the biggest monthly outflow since 2004.
Sumber : Google
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