Top Hedge Fund Managers Still Believe in Gold
Filings show that top-tier hedge fund managers Ray Dalio and John Paulson stayed true to the yellow metal in Q1.
Gold bugs rejoice — major hedge fund managers Ray Dalio and John Paulson are still rooting for the precious metal.
The yellow metal moved ahead 1.7 percent in 2018’s first quarter, pushed forward by a steadily weakening US dollar, which helped it dodge repercussions from rising US borrowing costs.
However, gold took a nasty tumble this week due to rising interest rates — it slipped below the US$1,300-per-ounce mark on Tuesday (May 15), closing at US$1,290.30 that day.
Are You Investing In Gold Yet?
What Happened To Gold In Q1? Which Gold Stocks To Watch In 2021?
Exclusive Information You Need To Make An Informed Decision.
Investors may be feeling shaken, but according to regulatory filings acquired by Bloomberg, Paulson’s firm Paulson & Co. had 4.32 million shares in SPDR Gold Shares (ARCA:GLD), the world’s largest gold exchange-traded fund, as of March 31.
Paulson & Co. was in the news last year after Marcelo Kim, a partner at the firm, urged investors to protect themselves from major gold miners’ “dreadful” performance — he called for the formation of a council aimed at making gold-mining companies more accountable.
In March, Paulson & Co. returned capital to clients in an effort to “focus on [its] core expertise” after its assets shriveled to $9 billion, down from $38 billion in 2011, a source told Bloomberg.
Meanwhile, Dalio’s hedge fund Bridgewater Associates also remained steady in Q1 with 3.9 million shares in SPDR and 11.32 million shares in the iShares Gold Trust (ARCA:IAU).
Dalio is known for his bullish stance on gold, and said last year that there are enough geopolitical issues that investors should allow gold to account for 5 to 10 percent of their portfolio.
The filings reported by Bloomberg do not show the current positions held by Paulson & Co. and Bridgewater Associates, so it is possible they have increased or decreased since then.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
