During an usual conference call Tuesday with financial advisers from Bank of America's wealth management unit and their clients, über hedge fund founder John Paulson reportedly defended the track record of his gold fund, which he allegedly acknowledged was the worst performing in the Paulson & Co. portfolio this year.
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In a June interview with Businessweek, Paulson said, "We view gold as a currency, not a commodity. Its importance as a currency will continue to increase as major central banks around the world continue to print money." He also stressed that demand for gold will stay high and that all of his gold holdings would shoot up in value.
Bank of America executives reportedly began Tuesday's conference call praising Paulson investments in gold miners. Spencer Boggess, chief investment officer for alternative investments, who led the call allegedly described Paulson's funds as a great way to play the "gold miner thesis."
Long bullish on gold, Paulson reiterated during the call that his bets on gold will pay off although current returns are disappointing. Almost a quarter of the Advantage funds were invested in gold this year, as well as in the Paulson Gold Funds, Businessweek reported in June.
Businessweek also observed that during Tuesday's conference call, Paulson discussed various scenarios for gold prices, the euro and the economy during the conference call. Reuters said Paulson observed that his portfolios are not structured to depend on specific economic conditions in order to flourish.
As Mineweb reported on August 15th, during the second quarter Paulson increased his holdings by 26% in the SPDR Gold Trust, the world's largest gold ETF. Among the fund's gold equity holdings are Allied Nevada Gold, AngloGold- Ashanti, Barrick, Gold Fields, NovaGold, Agnico-Eagle, Iamgold and Randgold.