Who is John Paulson And Why Did He Hire Greenspan?
Zero Hedge has article about hedge fund billionaire John Paulson who made a killing thanks to the real estate bubble.
For years, he warned about the carnage to come… All the while, he personally pocketed $3.5 billion shorting the subprime in 2007. By our latest count, he’s worth $12 billion (almost triple what it was in 2008).
Paulson is having a tough year in 2010. He has positioned his funds assets for the most part in bank stocks and depressed equities that will do well in an expected economic recovery. That strategy worked well in Q1, but not so well in Q2. YTD he’s down on $20.6 billion assets under management (AUM) and up 2.5 to 5.5% on $9.7 billion AUM. The losses would have been bigger if not for the percent in Gold assets. The two funds that are up 12.5% YTD are the Gold funds, but he has just $500 million in AUM.
The big news is he he has hired ex-FED Chairman Alan Greenspan to assist him with Gold.
Lastly, and perhaps most important, from a monetary policy perspective in developing an ability to forecast the timing and future price of gold we believe we have an unparalleled team. Former Federal Reserve Chairman Alan Greenspan has been extremely helpful to us in undestanding the relationship between the monetary base, the money supply, inflation and gold prices.
Zero Hedge concludes that the latest moves by John Paulson indicate he’s hedging his bets on the economic recovery. I would suggest that some of the $30 billion under management might shift out of recovery vehicles into the Gold fund. After all $500 million is a pittance if we are looking for $36,000 Gold.
Tags: John Paulson Alan Greenspan Gold
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