DISQUS

Market Folly: Paulson & Co (John Paulson) Buys Tons of Gold: 13F Filing 1st Quarter 2009

  • BrianFX · 6 months ago
    Great post!

    Now perhaps I just need a cup of a coffee, but can you explain this line about his GLD holdings: "Their hedge funds have a share class that is denominated in gold (instead of in US dollars or Euros)."

    Wouldn't the gold shares need to be priced against something that is non-gold? Unless you mean the shares are denominated in spot gold, which he can then sell for any currency (but what does this accomplish over holding normal GLD shares priced against USD)?
  • marketfolly · 6 months ago
    thanks for the compliment. Their funds have numerous share classes and I'm not exactly familiar with the gold share class so forgive me in that regard. I would assume it would be spot gold, no? I'm not sure as to the benefits or disadvantages to running it this way versus in a normal fiat currency. This is actually the first time I've encountered a fund class denominated in gold so I'm trying to familiarize myself and learn more regarding how it is setup. Will definitely post up if I find any breakthroughs.
  • Busy Man Fitness · 6 months ago
    "I'm not sure as to the benefits or disadvantages to running it this way versus in a normal fiat currency."

    Possibly because if there ever is a catastrophic currently collapse the fund may be able to liquidate positions faster before running for the hills!

    Btw, do we know if he has any currency positions?

    My honest guess is that he is short USD with gold holdings like that.
  • marketfolly · 6 months ago
    Nope no way for us to see currency positions besides whatever they may disclose in the media or investor letters. Have not seen anything to that extent, at least not yet.