Hedge fund giant Paulson & Co. had a successful February as the firm posted gains in its main strategies, thanks to bets on gold, mergers and credit.
Bloomberg reported that the New York-based firm’s event-driven fund rose 9.8% last month and is up 13% this year, while its gold fund jumped 18% and is up 40% for 2014. Another strategy increased 7.4%, bringing its 2014 total gain to 8.8%.
Paulson & Co.’s bet on gold did not always yield positive results. eVestment reported last year that the firm’s investment in gold wiped out $973 million of founder John Paulson’s personal fortune--most of which is invested in the hedge fund—in two days.
Paulson rose to fame after making $3.7 billion in 2007 by short-selling subprime mortgages. Paulson & Co. currently manages approximately $21 billion in in assets, down from its $36 billion AuM in 2010.