Great news for those of us on the Jacksonian Sound Money Bus. Mega -“Correctumundo” mortgage backed bond-shorting hedgie John Paulson of Paulson & Co. has been piling into gold and gold miners in the first quarter of the year. Propitious for us, no?
From the Bloomberg article:
May 15 (Bloomberg) — Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.
As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust [[GLD]], an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.
That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.
Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF [[GDX]], a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.
Paulson also bought a 2.6 percent of Gold Fields Ltd. [[GFI]], becoming the fourth-largest holder of the Johannesburg-based gold miner.
The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp [[KGC]]. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.
Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd. [[AU]], also based in Johannesburg, in March.
Rejoice Jacksonians, you are in the company of “the smartest guys in the room” since 2005.
A hat tip to my friend and fellow Precious aficionado Gary Savage at The Smart Money Trader for sending me the good news.
Ciao for now.
Updated translation of the above for my hardened Gaelic friends: Latha math dhut!