Paulson Changing Tone, Won't Add More to Gold Fund

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Nov. 22 (Bloomberg) -- Billionaire John Paulson, the best-known gold bull since he started wagering on bullion more than three years ago, is backing away from his bet. Alix Steel reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Technically i am not a gold bug.

For paulson, he has seen a move away from the previous gold that prices.

He is down a whopping 26% this year.

According to a person familiar with the matter at the firm's annual meeting yesterday, he said he would personally not invest more money into his gold fund.

It shrunk all the way down to $370 million.

We have to compare that to $1 billion at the end of 2012. many of the gold stocks are undervalued.

It is really the gold price that has shrunk this.

The issue is we have not seen a lot of growth in the economy so there's not a lot of inflation.

Typically gold is seen is seen as that popular inflation hedge.

This is an inflation gauge and we are not seeing that.

He is not the only one who soured on gold.

He was the last holdout.

There have been new ones as well.

We are looking at george soros and dan loeb.

Hedge funds, money managers have dumped their holdings as well.

Holdings are down 48% this year.

The reason why this is such a big deal for paulson is because he believes so much in the gold story.

He actually used the gld to start share classes for his funds that were denominated in gold versus the dollar as a way to diverse affiant in what he would thought would be a rapidly depreciating currency.

He also told the clients back in june, just about five months ago, that he has no intention of closing down the strategy and recommended investors stay invested and valuations provide significant upside.

There are still about 10 million shares that he holds outstanding and the dod.

The idea is definitely a big departure for him.

Thank you.

Organ have more on where the big money is investing.

Do not a -- do not miss our exclusive interview with bill ackman later this morning.

10 a.m. eastern time on market makers.

In washington stocks are reaching record highs but investor confidence is reaching record lows.

This is according to a new poll by bloomberg.

Julianna goldman joins us from

This text has been automatically generated. It may not be 100% accurate.

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