Difficulty in fund raising for Paulson gold fund

[EricPhan]

"When Mr. Paulson's Paulson & Co. late last year announced it was starting a hedge fund to make a big gold bet, many on Wall Street expected investors to line up. Paulson & Co. scored about $20 billion in profits in 2007 and 2008 wagering against subprime mortgages and financial companies. It then bought financial shares last year to add more gains.

Some gold traders expected Mr. Paulson's new fund, launched Jan. 1, to raise billions of dollars and even help push gold higher when it started buying this year.


That hasn't happened. Despite months of investor meetings, Mr. Paulson has raised $90 million or so for his new gold fund, according to people close to the matter. Even the $250 million that Mr. Paulson himself placed in the fund hasn't persuaded many investors to get on board."


More at http://www.gata.org/node/8316


This is not the optimism of bull market tops.

[cjppjc]

Re: Difficulty in fund raising for Paulson gold fund

Paulson & Co. scored about $20 billion in profits in 2007 and 2008 wagering against subprime mortgages and financial companies.

Yea? 2007 & 2008?

[GRG55]

Re: Difficulty in fund raising for Paulson gold fund

"When Mr. Paulson's Paulson & Co. late last year announced it was starting a hedge fund to make a big gold bet, many on Wall Street expected investors to line up. Paulson & Co. scored about $20 billion in profits in 2007 and 2008 wagering against subprime mortgages and financial companies. It then bought financial shares last year to add more gains.

Some gold traders expected Mr. Paulson's new fund, launched Jan. 1, to raise billions of dollars and even help push gold higher when it started buying this year.


That hasn't happened. Despite months of investor meetings, Mr. Paulson has raised $90 million or so for his new gold fund, according to people close to the matter. Even the $250 million that Mr. Paulson himself placed in the fund hasn't persuaded many investors to get on board."


More at http://www.gata.org/node/8316


This is not the optimism of bull market tops.

Two things are working against M Paulson:

1. At the moment agnostic investors are favouring income over capital gains, and it's damn difficult to generate a distribution from a gold fund; and
2. The "non-agnostic" gold investor isn't going to hand over their money to someone else to hold their gold [just ask jtabeb...]

So, good idea...but not a great idea...;)

[hayekvindicated]

Re: Difficulty in fund raising for Paulson gold fund

Two things are working against M Paulson:

1. At the moment agnostic investors are favouring income over capital gains, and it's damn difficult to generate a distribution from a gold fund; and
2. The "non-agnostic" gold investor isn't going to hand over their money to someone else to hold their gold [just ask jtabeb...]

So, good idea...but not a great idea...;)

If John Paulson(!!!!) is having trouble raising money for a gold fund, we are a LONG way away from a gold bubble. Had gold been a bubble, every tom dick and harry would be floating a gold fund and they'd all be sold out in no time.

[Chris]

Re: Difficulty in fund raising for Paulson gold fund

If John Paulson(!!!!) is having trouble raising money for a gold fund, we are a LONG way away from a gold bubble. Had gold been a bubble, every tom dick and harry would be floating a gold fund and they'd all be sold out in no time.

Or maybe there isn't that much left in the gold run? (not my opinion).

If I recall correctly, EJ doesn't just hold gold and treasuries. He holds a basket of precious metals and treasuries. What's to say that they couldn't take down the gold price while other PM's benefit from the degeneracy caused by the financial crisis?

[jtabeb]

Re: Difficulty in fund raising for Paulson gold fund

Or maybe there isn't that much left in the gold run? (not my opinion).

If I recall correctly, EJ doesn't just hold gold and treasuries. He holds a basket of precious metals and treasuries. What's to say that they couldn't take down the gold price while other PM's benefit from the degeneracy caused by the financial crisis?

47.5% Gold, 47.5% Silver 5% Palladium and Platinum, works wery WERY WELL! (Plus enough cash for 1 tank of gas, a pack of smokes, and dinner at IHOP, you know, for one last Hurrah).;)