Hedge fund manager John Paulson’s gold bet has cost him nearly $1 billion in two days.
Bloomberg reported that the tumbling gold price has wiped out $973 million of Paulson’s personal fortune, most of which is invested in his New York-based hedge fund Paulson & Company. The precious metal plummeted 13% in the last two trading days.
The article also said that Paulson & Company “is sticking [to the] thesis that gold is the best hedge against inflation and currency debasement as countries pump money into their economies.”
Paulson rose to fame after making $3.7 billion in 2007 by short-selling subprime mortgages. Paulson & Co. currently manages approximately $18 billion in in assets, down from its $36 billion AuM in 2010.