Hedge-fund billionaire John Paulsonâs gold fund lost 14 percent in January, its first month of operation, two investors said. The fund invests in mining companies and bullion-related derivatives, according to the investors, who asked not to be named because the fund is private. Paulsonâs $32 billion Paulson & Co., based in New York, bought gold companies in its other funds as well as bullion rose about 24 percent in 2009. Gold futures fell to a three-month low of $1,044.50 in New York today as the dollarâs rally reduced demand for the precious metal as an alternative investment. Paulson, 54, is the largest investor in the fund with a $250 million personal stake, the people said. He started the fund as a long-term bet that gold will rise. Investors canât exit the fund for three years. Paulson earned an estimated $2 billion in 2008, according to Institutional Investorâs Alpha Magazine. His Credit Opportunities Fund soared almost sixfold in 2007 on bets that subprime mortgages, or loans made to homeowners with bad credit, would plummet. http://www.businessweek.com/news/20...und-said-to-tumble-14-in-its-first-month.html
With that kind of lockup it doesn't matter if gold rises, Paulson will likely come out with a profit just on the annual fees