John Paulson's huge bet on gold
Buckle up, John Paulson investors.
Bloomberg reports that the billionaire hedge fund manager has put 44% of his firms assets into gold.
Paulson & Co. purchased an additional 4.53 million shares of the SPDR Gold Trust, the firm’s largest position, and bought more shares of NovaGold Resources Inc. (NG), according to a Form 13F filed yesterday with the U.S. Securities and Exchange Commission.
Paulson has been a fan of gold miners and the SPDR Gold Trust in the past.
In 2007 Paulson famously made the trade of the decade when he shorted subprime mortgages and made $3.7 billion.
He has been brought down to earth by bad trades, such as the Sino-Forst Corporation that dropped sharply after suspect accounting. It later filed for bankruptcy and cost Paulson's firm $720 million.
Creative Commons Flickr image taken by kalleboo