Paulson cuts gold holding and reduces risk on hedge funds

John Paulson, the billionaire hedge fund manager, cut his holdings in a gold ETF during the third quarter.

According to regulatory filings released on Monday, Paulson sold a third of his holdings in the SPDR gold trust in Q3. However, his $30bn Gold hedge fund was still the largest holder of the ETF at the end of September, with a stake worth $3.5bn at the current gold price of $1,779 an ounce, the Financial Times reports. Paulson's Gold hedge fund, his smallest, has been a rare high spot for a manager facing severe losses in his flagship funds, returning 9.75% for the year to the end of October, according to investors. He uses the ETF and other derivatives linked to the price of gold t...