New York (HedgeCo.net) – According to investors, hedge fund manager John Paulson, who through Paulson& Co., has raised over $1 billion for clients, has plans to launch a fund dedicated to buying up shares of bullion-related investments.

The Wall Street Journal reports that the gold fund will aim to outperform gold prices, by investing in gold-related shares and derivatives. Paulson currently has more than 10% of his $30 billion or so under management in gold-related investments, according to his investors.

“Gold has gone up 10% since the start of the month,” Andrew Schneider, co-founder of HedgeCo Networks, said, “Investors may also see gold as a hedge against US dollar fluctuations.”

John Paulson is best known for his bet against financial companies before the credit crisis which some have speculated earned his firm as much as $15 billion in 2007.

Alex Akesson
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Tags: andrew schneider, derivatives, gold fund, hedge-fund-manager, john paulson

Reuters – A hedge fund run by RAB Capital that invests in gold has fallen about 17.5 percent since the start of June, the group said, missing a large rise in the gold price because of bad bets.

The $35 million RAB Gold fund made the losses between June and August — a period in which the gold price dropped slightly — after taking out an interest rate swap on gold and shorting equities that continued to rise.

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Tags: bets, gold fund, hedge fund