Housing savant Paulson now looks to gold

Paulson & Co. to buy shares of gold-related investments in 2010. Paulson to invest $250 million.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Hibah Yousuf, CNNMoney.com staff reporter

301 Moved Permanently

301 Moved Permanently


nginx
On Black Friday, what are you looking to get at a bargain?
  • Electronics
  • Clothing
  • Toys
  • Appliances
  • Jewelry

NEW YORK (CNNMoney.com) -- Billionaire John Paulson, who earned his hedge fund billions when he bet against the housing bubble, is waging a new noteworthy bet.

Paulson is investing as much as $250 million in a new gold fund next year.

His hedge fund, Paulson & Co., will launch the fund Jan. 1, 2010 and will buy shares of gold miners and make other investments related to the precious yellow metal, a source familiar with the firm's plans told CNNMoney.com. Paulson discussed the fund at a meeting with investors on Tuesday.

It will aim to outshine record-breaking gold prices, which have been hitting all-time highs recently as the dollar has weakened, fueling inflation fears.

Although the minimum investment for the gold fund in unknown, hedge funds usually require a minimum $1 million investment to get into the fund. Most of Paulson & Co. funds are focused on institutional investors.

Paulson, who is worth an estimated $6 billion and raked in $2 billion in 2008, invested in gold earlier this year when he purchased shares of AngloGold Ashanti Ltd. (AU) and Kinross Gold (KGC); about 10% of his $30 billion fund in gold-related investments.

Paulson also owns billions in gold exchange-traded funds and forward contracts, which have profited from the mounting gold prices. Gold hit a fresh record high near $1,150 Wednesday. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More
Mercedes SL65 AMG: 621 horses of topless power Turn heads as you blow by traffic in this roadster convertible from Mercedes. More
Where the middle class is most unequal CNNMoney looks at the five states with the biggest differences in middle class incomes. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.