Paulson Said to Lose 27% in Gold Fund Last Month in Rout

 

Billionaire John Paulson, the hedge- fund manager seeking to reverse two years of losses in some of his strategies, lost 27 percent in his Gold Fund last month after the precious metal and related securities plummeted, according to two people familiar with the matter.

The loss brings the strategy’s decline to about 47 percent 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 $500 million, down from about $700 million at the end of March.

Gold fell 7.8 percent 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 percent, including reinvested dividends.

Armel Leslie, a spokesman at Walek & Associates for New York-based Paulson & Co., declined to comment on the returns. Paulson’s firm oversees about $18 billion in assets.

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He will get a "hedge fund manager of the year" award :):)

Reason: