While Bank of America reports that fund managers are currently net short gold, two giants of the hedge fund arena are reportedly staying their course on the yellow metal.
According to the New York Post, Greenlight Capital’s David Einhorn and Paulson & Co’s John Paulson are both standing firm on their massive bets, even after seeing gold prices hit five-year lows.
Paulson, whose gold-linked funds famously took a bath in 2012 and 2013, still holds 6% of AngloGold Ashanti and a large amount of GLD shares, while Einhorn, who’s fund is currently down 7%, still has gold in his top six positions — mostly held in bullion. Both are apparently betting that central banker’s easing measures will all end up in inflation.
Interestingly, the yellow metal’s fall has been subdued today, though analysts expect it blow through support as the Fed nears lift-off.
Photo: Bullion Vault