Billionaire
hedge fund manager John Paulson, who told investors as recently as last month
that they should own gold, cut his holdings in the metal by more than half as
prices plunged into a bear market.
Paulson
& Co., the largest investor in the SPDR Gold Trust, the biggest
exchange-traded product for the metal, pared its stake to 10.2 million shares
in the three months ended June 30 from 21.8 million at the end of the first
quarter, according to a government filing yesterday. The New York-based firm,
which manages $18 billion, cut its ownership for the first time since 2011 “due
to a reduced need for hedging,” according to an e-mailed response to questions.
The
hedge fund is following other money managers who have been more aggressive in
getting out as investors lost faith in gold as a store of value. Prices plunged
by a record 23 percent in the second quarter as U.S. equities rallied and
inflation was muted, while the Federal Reserve suggested it will reduce fiscal
support for the economy. Billionaires George Soros and Daniel Loeb sold their
entire SPDR stakes in the past quarter, U.S. Securities and Exchange Commission
filings showed.
(Source:
Bloomberg)
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