John Paulson is still invested in gold
Based on 13F filings, despite weaker gold prices, hedge funds maintained their investments in gold in the third quarter. According to Fintel, at the end of the quarter, Paulson & Co. had 4.32 million shares of the world’s largest gold-backed ETF, the SPDR Gold Shares ETF (GLD).
Although the number of shares remained the same sequentially, the value of those holdings fell from $512.6 million to $487.1 million. This stake formed 9.1% of Paulson & Co.’s total holdings at the end of the third quarter.
John Paulson is a long-time gold bull. Paulson loves gold for several reasons, and he’s stated that long-term investors could consider gold a good bet as an inflation hedge.
Focus on increasing shareholder returns
Paulson has also been quite vocal regarding the deteriorating shareholder returns in the gold sector. In a bid to improve shareholder returns, he announced on September 21 that he was teaming up with other gold investors in a coalition that would issue analyst reports and engage with management to improve capital allocation and corporate governance in gold companies.
Stake in gold companies
Among major gold companies (GDX), Paulson remains exposed to AngloGold Ashanti (AU), NovaGold Resources (NG), Randgold Resources (GOLD), Goldcorp (GG), IAMGOLD (IAG), and Seabridge Gold (SA). The value of Paulson & Co.’s holdings in Seabridge increased the most at 16.14% in the third quarter. In contrast, IAMGOLD’s value fell the most at 36.66%.