Some guys should quit when they’re ahead. John Paulson made a $3.7 billion in a single year by shorting housing in the crisis. He proclaimed gold as the next big thing and invested heavily but his gold fund, which consists mostly his own money, has become a laughingstock. His other funds have also struggled to losses in each of the last two years but are higher this year.
Bloomberg reports that his PFR gold fund fell 23% in June and is down 65% this year. Physical gold is down 11% and 26%, respectively. In a letter to clients, Paulson said his fund may produce outsized returns in the long run.
Paulson thinking how he’ll console himself with what’s left of his $12B fortune
