Billionaire hedge-fund manager John Paulson maintained his position in SPDR Gold Shares, the world’s biggest exchange-traded product backed by the metal, a regulatory filing showed Monday. Stan Druckenmiller’s Duquesne Family Office LLC bought 2.85 million shares in Barrick Gold Corp., adding the company to its holdings in the period ended March 31, while Templeton Global Advisors Ltd. more than tripled its stake in the Toronto-based miner.
Investors poured $460 million into SPDR Gold in the first quarter, rebuilding their stake after the biggest redemption since June 2013. Investors returned to bullion and gold miners as they dialed back expectations of faster U.S. economic growth amid concerns about U.S. President Donald Trump’s ability to push his pro-growth policies through Congress.
In February, hedge-fund manager David Einhorn said he’s betting on declines in government debt and a rebound in gold to guard against the risk of inflation under Trump. Druckenmiller said in the same month that he bought gold in late December and January, reversing the sale he made after the U.S. presidential election. Even on May 2, when the bullion rally was slowing, DoubleLine Capital LP Chief Executive Officer Jeffrey Gundlach said “it is not the time to give up on gold,” adding that prices are likely to head higher.
Templeton bought 12.2 million shares in Barrick, taking its holdings to 18.2 million shares in the first quarter, a filing on May 12 showed. Capital Group Companies Inc. added Barrick to its portfolio, buying 35.3 million shares to become the miner’s third-largest shareholder, according to a separate filing Monday.
LPL Financial LLC bought 1.03 million shares in iShares Gold Trust valued at $12.4 million in the first quarter, adding the second-largest gold-backed ETF to its total holdings, a filing showed Monday. Hedge fund Adage Capital Partners GP LLC sold 7.5 million shares in Barrick in the first quarter, paring its holdings by almost two-thirds to to 4.67 million, according to a regulatory filing on May 15.
Gold for immediate delivery rebounded 8.9 percent in the first quarter, after slumping 13 percent in the prior three months. The metal has lost about 1 percent since the end of March to $1,235.96 an ounce in London on Tuesday. — Neal Bhai Reports