Billionaire John Paulson, the hedge- fund manager seeking to reverse two years of losses in some of his strategies, lost 27% in his Gold Fund last month after the precious metal and related securities plummeted, according to two people familiar with the matter.
Bloomberg reports that the loss brings the strategy’s decline to about 47% this year, said the people, who asked not to be identified because the information isn’t public. The fund is made up primarily of Paulson’s own money, one of the people said.
The strategy has about $500m, down from about $700m at the end of March.
Gold fell 7.8% last month, including the biggest two-day decline since January 1980, as the U.S. economic recovery gained momentum, the dollar rose and Federal Reserve policy makers signaled they may scale back asset purchases, curbing demand for the metal as a haven.
Bullion producers slumped 20%, including reinvested dividends.
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