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Paulson Maintains Gold Position During 2Q Despite Price Decline

Kitco News

(Kitco News) - The hedge fund Paulson & Co., overseen by well-known hedge fund manager John Paulson, stayed the course on its position in the world’s largest gold exchange-traded fund during the second quarter even though the price of the precious metal fell, filings show.

Meanwhile, Soros Fund Management LLC has remained out of gold since exiting from its shares of Barrick Gold Corp. in the fourth quarter of 2016.

Institutional investment managers must file a Form 13F-HR, showing their major holdings, with the Securities and Exchange Commission within 45 days of the end of the quarter. The most recent filings show holdings of funds as of the end of the second quarter on June 30, but do not reflect any changes that might have occurred since.

Paulson & Co. continued to hold 4.32 million shares in SPDR Shares Gold, the world’s largest gold ETF. During the first quarter, the fund had trimmed its holdings modestly to this level from 4.36 million shares at the end of the fourth quarter.

However, as of June 30, the value of those shares fell to $512.6 million from $543.4 million as of the end of the first quarter as the price of gold fell. Comex December gold futures lost 5.9% during the quarter to finish June at $1,266.30 an ounce. Gold ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

The filings show Paulson’s fund was also exposed to gold through stakes in producers Agnico Eagle Mines Ltd., AngloGold Ashanti Ltd., Goldcorp Inc., Iamgold Corp., NovaGold Resources Inc., Randgold Resources Ltd. and Seabridge Gold Inc.

One day earlier SEC filings showed that fund manager Ray Dalio’s Bridgewater Associates also maintained holdings in gold exchange-traded funds during the second quarter.

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