Sunday, May 17, 2009

Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter HUI, XAU, RMK.v, TNR.v,, SNU.v, GBN.v, BTT.v, FVI.v, OK.v, SBB.v,,

Gold is in a Cup and Handle bullish formation, mometum indicatros are turning positive.

"Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
By Katherine Burton
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, 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, 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., 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. 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., also based in Johannesburg, in March.
Armel Leslie, a spokesman for Paulson, declined to comment.
Paulson’s largest fund, the Advantage Plus Fund Ltd. returned 4.8 percent through April.
Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
To contact the reporter on this story: Katherine Burton in New York at Last Updated: May 15, 2009 15:58 EDT "
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