John Paulson’s Gold Fund Lost 14% in January

Investment guru John Paulson who raked in $15 billions in 2007 by betting against the real estate bubble started a hedge fund dedicated solely to gold in January. According to Bloomberg, the fund, which invests in mining companies and bullion-related derivatives and whose main aim was to outperform gold prices, is not doing well.

Bloomberg: “Hedge-fund billionaire John Paulson’s gold fund lost 14 percent in January, its first month of operation, two investors said.

Gold futures fell to a three-month low of $1,044.50 in New York today as the dollar’s rally reduced demand for the precious metal as an alternative investment.”

Paulson is the largest investor in the fund with a $250 million personal stake, the paper said.

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