Gold’s Decline Sinks Prominent Hedge-fund Manager

Hedge-fund manager John Paulson seems to be enduring the worst year in his career. He is facing a final blow from this month’s selloff in gold. The investment mitigated losses at $28 billion.

The SPDR Gold Trust (NYSEARCA:GLD) exchange-traded fund dropped 10 percent from the end of last month. All 8 of Paulson’s gold stocks declined. As of Sept. 30 Paulson was the largest shareholder in the SPDR Gold Trust (NYSEARCA:GLD). The declines would be a loss of $672.1 million if his holdings have not changed since the end of the third quarter.

“With the dramatic moves of gold and the recent decline from its peak, I think some investors will be deciding whether they want to continue to invest in that share class,” said Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors.

Paulson has lost money this year on other investments including Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC) and Sino-Forest Corp. (AMEX:TRE). Paulson also cut the net exposure in his main funds to 30 percent last month and reduced bullish bets across all his funds on stocks.

Gold’s five-month low dropped it below its 200-day moving average for the first time in almost three years. Bullion dropped under $1,600 an ounce yesterday to the lowest level in five months.

Here’s how all these investments closed the week:

SPDR Gold Trust (NYSE:GLD): GLD shares recently traded at $155.23, up $0.92, or 0.6%. They have traded in a 52-week range of $22.64% to $. Volume today was 72.87B shares versus a 3-month average volume of N/A shares. The company’s trailing P/E is Commodities Precious Metals, while trailing earnings are $State Street Global Advisors per share. Get the most recent company news and stock data here >>

Citigroup, Inc. (NYSE:C): C shares recently traded at $26.00, up $0.08, or 0.31%. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 43,987,156 shares versus a 3-month average volume of 59,459,800 shares. The company’s trailing P/E is 6.93, while trailing earnings are $3.75 per share. Get the most recent company news and stock data here >>

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $5.20, down $0.06, or 1.14%. They have traded in a 52-week range of $5.03 to $15.31. Volume today was 219,302,638 shares versus a 3-month average volume of 271,186,000 shares. The company’s trailing earnings are $-0.31 per share. Get the most recent company news and stock data here >>

Tanzanian Royalty Exploration Corporation (AMEX:TRE): TRE shares recently traded at $6.83,. They have traded in a 52-week range of $4.51 to $7.82. Volume today was 0 shares versus a 3-month average volume of 480,462 shares. Get the most recent company news and stock data here >>