Gold may be up today but it is still down more than 25% in 2013. And, some big names are feeling a lot of the pain.
Gold may be up nearly 3% today but it is still down more than 25% in the first six months of 2013. And, some big names who are long the yellow metal are also feeling a lot of the pain.
David Einhorn’s Greenlight Fund was already hit by Apple, which is 16% of its portfolio. Now there’s even more bad news for his investors. According to Reuters, Einhorn’s $930 million gold fund has bled 20% so far in 2013. Einhorn is known for preferring to hold physical gold and has a large position in Barrick Gold.
Noted gold bug John Paulson’s $700 million gold fund was down 47% in April and has kept quiet about his returns since. Meanwhile, Dan Loeb’s investment in gold, primarily in physical bullion, was sold off earlier but returns on his $12 billion fund took a 1.7% hit last month.
These are some of the smartest fund managers around today. And yet they’ve taken incredibly large hits on gold. Are they right in the long term or have they been buying fool’s gold?
We ask Talking Numbers contributors Enis Taner, Global Macro Editor at RiskReversal.com, and Richard Ross, Global Technical Strategist at Auerbach Grayson, to take a look at where gold goes next.
To see Taner and Ross analyze gold, watch the video above.