MINING FINANCE / INVESTMENT

New gold fund to be started by hedge fund billionaire John Paulson

The Wall Street Journal has said that billionaire fund manager John Paulson, who is said to hold $3.5 billion in the SPDR Gold Trust is starting a new gold fund, begfnning January 1st.

Posted: Thursday , 19 Nov 2009

NEW YORK (Reuters) - 

Billionaire hedge fund manager John Paulson is launching a new gold fund, which will include $250 million of his own personal investment, the Wall Street Journal reported on Wednesday.

Paulson is among a number of hedge funds managers stocking up on the precious metal, for centuries considered a hedge against inflation, as governments around the world ramp up spending to combat recession.

Citing three investors, the Journal said the fund will focus on gold mining stocks and gold-related investments.

Paulson spoke about the new fund, which will begin on January 1, at a meeting with his investors in New York on Tuesday.

Paulson's combined gold and gold-related investments make up about half of his firm Paulson & Co's holdings.

Paulson already owns big stakes in gold miners AngloGold Ashanti Ltd, Kinross Gold Corp and Gold Fields Ltd.

He is also by far the biggest shareholder of SPDR Gold Trust, the world's largest gold-back exchange-traded fund (ETF). His investment in the ETF is valued at about $3.53 billion on Wednesday.

A spokesman for Paulson & Co declined to comment.

(Reporting by Frank Tang; Editing by Christian Wiessner)

© Thomson Reuters 2009. All rights reserved