Über hedge fund manager John Paulson has told nervous Bank of America managers and investors that his bets on gold will pay off, according to various news media reports.
by Dorothy Kosich, MineWeb.com
During an usual conference call Tuesday with financial advisers from Bank of America’s wealth management unit and their clients, über hedge fund founder John Paulson reportedly defended the track record of his gold fund, which he allegedly acknowledged was the worst performing in the Paulson & Co. portfolio this year.
Various news media organizations quoted unidentified sources who participated in the call. The conference call was prompted in part by a decision by Citigroup’s private bank to withdraw $410 million from Paulson’s two largest funds, Advantage and Advantage Plus.
Paulson’s assets under management have reportedly dropped from $36 billion at the start of 2011 to $19.5 billion. Paulson Advantage dropped 36% in 2011 and has declined 13% this year. The Wall Street Journal reported that Paulson Advantage Plus is down about 18% this year after losing more than half its value last year.