After almost a year of behind-the-scenes work, billionaire hedge-fund manager John Paulson has formed a coalition with 15 other investors aimed at curbing years of what his fund has called value destruction in the gold sector.
John Hathaway — who is a general partner at Tocqueville Asset Management LP — and activist fund Livermore Partners are among those who have agreed to join the group, according to an emailed statement from the newly formed Shareholders’ Gold Council.
Egyptian billionaire Naguib Sawiris’ La Mancha Group is also on the council. In April, Sawiris told Bloomberg he put half his $5.7 billion net worth into gold. The idea for the group was first floated by Paulson & Co. during the Denver Gold Forum last September.
“Since last year, the gold price has crept lower and shareholder returns have been poor,” Marcelo Kim, a partner at Paulson, said in a separate email. “Interest in the sector has continued to languish, and you have seen capital leave the space and notable fund closures.”
Gold was trading around $1,300 an ounce, about $90 higher than current spot prices, when Paulson announced plans to unite big institutional gold investors around common issues.
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