Paulson’s Gold Fund Fell 13% in May

June 12, 2013 at 08:14


John Paulson plans to stop broadly updating investors on the performance of his beleaguered gold fund in an attempt to focus attention on his other funds, which have fared better.

The gold fund’s May performance suggests another reason Paulson may have changed the way he communicates with his clients: His gold fund fell 13% last month, bringing its losses for the year through May to 54%.

The numbers, communicated by Paulson & Co. in an investor letter are for a fund that makes up 2% of the firm’s roughly $18 billion in assets under management. But they reflect Paulson’s broader attachment to gold, which is his bet that paper currency will lose value as central banks continue to print money.

Paulson continues to view gold investments as attractive, according to people close to the matter, citing what he considers to be an attractive valuation for many gold-mining companies, which have slumped for several years.

Paulson & Co. said it had no intention of closing down the gold fund, which is owned largely by Mr. Paulson. The investor letter also said the Paulson Gold Funds would be renamed PFR Gold Funds, reflecting the names of Mr. Paulson and his two gold strategists, Victor Flores and John Reade.