The Journalreports today that John Paulson's gold fund, which launched Jan. 1, is failing to attract investors. We're told it' ain't so. While the fund did lose "about 10%" since it launched, JP is confident and "believes in this play."
"This is a three to five year play, so judging on an interim basis is nonsense," said a person familiar with the matter. Paulson put $250 million of his own money to launch it and "if people want to come on board and join, great. If not, he's still doing it for himself and it's still mission accomplished." Similar stories ran amok when JP launched his credit funds and well, we know what happened.
The doubtful would-be investor quoted in the WSJ manages $150 million in assets. Given that minimum investment in the fund is $10 million, "this is not even the kind of investor John would be interested in."
In related news, Esquire is now giving out advice on how to invest in gold.