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John Paulson Gold Fund

John Paulson Gold Fund

John Paulson's Gold Fund Struggles to Attract Investors

When John Paulson launches a fund he hardly ever has trouble finding investors due to his impressive track record, especially in the last two years.  But Paulson's gold fund has only received $90 million from investors compared to the $250 million Paulson invested himself.  The fund has declined 14% in January as the price of precious metals failed to keep climbing in the new year which won't help enticing new investors. 
Paulson & Co. burst onto the scene in 2007, producing triple-digit returns betting against the subprime market. It’s also posted consistently positive returns over the past two years. The New York-based firm’s main hedge funds are currently big investors in gold, with about 10% of its assets invested in the precious metal and related investors.
But some doubt Paulson’s commodities-trading skills, The Wall Street Journal reports. Others think they can do just as well investing in levered exchange-traded funds, which don’t feature a three-year lockup, $10 million minimum investment or 20% performance fee.
Others just think that it is an inopportune time to jump in feet first.
“It’s purely my negative view on gold in the short run,” Christopher Zook of CAZ Investments told the Journal. “I just am waiting for hopefully a better entry point.”
Still, it is early going for the six-week-old fund. The Journal notes that Paulson had trouble attracting investors to his credit fund in 2006, a year before his bets proved tremendously profitable.  Source

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