John Paulson has had a particularly tough year, but that’s not because of his investments in gold bullion.
The Wall Street Journal reported that the hedge fund magnate and head of Paulson & Co. has posted a -19.65% return year-to-date in his Advantage Fund, according to two investors who chose to remain anonymous. Furthermore, the fund is down over 13% thus far in June.
The main culprits in John Paulson’s fund have been large positions in several financial companies, most notably Bank of America (BAC) and Citigroup (C). The largest contributor, however, is likely Sino-Forest (TRE.TSX), which has plunged more than 80% in the past month following allegations from research firm Muddy Waters that the company is engaging in fraudulent accounting practices.
On the positive side, “One Paulson wager that is working,” the WSJ noted, “gold. At the start of 2009, Mr. Paulson launched a fund to buy gold investments and has told investors that he placed a good chunk of his own money in gold. The yellow metal is up more than 7% so far this year.”
Paulson & Co. is the largest holder of the SPDR Gold Trust (GLD), the world’s largest gold ETF, with 31.5 million shares.
However, although the yellow metal itself has performed well, several gold equities in which Paulson holds a large position have not. These include AngloGold Ashanti (AU) and Kinross Gold (KGC), among others. Year-to-date, AU and KGC have fallen 12.9% and 18.3%, respectively.
Platinum Group Metals Reports Acceptance of WBJV Mining Rights Application
Platinum Group Metals (PLG.NYSE AMEX) announcement that the South African Department of Mineral Resources (DMR) has accepted the Company’s application for a mining right for the WBJV Project 1 Platinum Mine. This development indicates that the company has complied with submission requirements and can now proceed with the completion and submission of its Environmental Impact Assessment (EIA) and Environmental Management Programme Report.
On March 28, the emerging platinum producer received the consent of the South African Department of Mineral Resources for the company's detailed underground development plans and environmental management program, including the mining of a bulk sample. Civil engineering contractors are mobilizing and development is advancing on the project, which is strategically located on the world’s most prolific platinum-producing belt.
Platinum Group Metals is also conducting exploration work on its Canadian properties located near Thunder Bay, Ontario. Full Platinum Group Metals News Release.
PLATINUM TO FOLLOW SILVER?
