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Did Ray Dalio and John Paulson Revise Their Gold Positions in Q1?

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Ray Dalio’s holdings

As the 13F filings became available during the start of last week, much of the market buzz was about what money managers are holding and what they are staying away from. In this article, we’ll look at the holdings of billionaire Ray Dalio of Bridgewater Associates and John Paulson of Paulson & Co. during the first quarter of 2018.

Ray Dalio held his holdings in the SPDR Gold Shares (GLD) Fund and the iShares Gold Trust (IAU) constant. Dalio’s market value in GLD is at approximately $491 million, or 4.7% of his portfolio. IAU makes up 1.2% of his portfolio and is valued at $144 million.

[marketrealist-chart id=2736427]

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John Paulson on gold

In March, Paulson’s gold and special situations hedge funds were said to be returning client capital. Paulson & Co had around 4.3 million shares of GLD at the end first quarter 2018, down from 4.4 million during the previous quarter, which is a relatively small reduction.

The above chart compares GLD to the broader S&P 500 ETF (SPY). Volatility in equities seems to be higher than that of gold. Gold is traditionally used as a haven asset, and if we look at the 2008 crisis, gold and other precious metals had emerged strongly amid a market slump. The buffer that gold provides could likely be a motivation behind the big hedge fund managers keeping it close.
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