See the original published story here.
According to the WSJ, the famed money manager will launch in January 1st a fund dedicated to buying up shares of gold miners and other bullion-related investments. The new fund will invest in gold-related shares and gold derivatives and will aim to outperform gold prices.
According to the story about 10% of Paulson’s management assets are in Gold. He’s starting the fund in part to give himself more exposure to Gold.
In our opinion, it is important to note Paulson’s exposure to Gold. Go back in time, and the adage was to have 10% of your funds in Gold at all times. Now, even the mainstream guys bullish on Gold, like Gartman, Paulson and Steve Leuthold barely have 10% in Gold. More and more people are exposing themselves to precious metals but in our opinion, the sector is still underowned.