Copper the New Gold for Paulson?

Chidem Kurdas

John Paulson’s various investment vehicles, ranging from the Advantage and Paulson Partners funds to separately managed accounts for large customers, are holding NovaCopper Inc. Even the famous Paulson gold fund now owns some 1.3 million shares of the copper mine operator.

Paulson was in the vanguard of gold investing as a hedge against expected inflation and erosion in the value of the US dollar. Is he diversifying into copper as a hedge? Both commodities could play this role.

But copper is a more of an industrial metal and hence sensitive to economic growth. Recession in Europe and slowdown in China don’t bode well for the price, though it has partially recovered from its summer low.

NovaCopper recently announced promising copper finds in Alaska, with some gold also found in the same ground. The company is a spinoff from NovaGold.   Widely held by hedge funds as a gold play, NovaGold is a long-time Paulson & Co. investment.

 

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2 Responses to “Copper the New Gold for Paulson?”

  1. JP Morgan Highbridge Housing Revival Portfolio « HedgeFundSmarts Says:

    […] there is John Paulson’s stake in NovaCopper—copper seems to have become the new gold for him. Even his gold fund […]

  2. Paulson Boosts Bet on Metals | HedgeFundSmarts Says:

    […] of Alaska, which is known to contain deposits of copper, zinc, lead as well as gold and silver. Various Paulson funds, among them the gold fund, own the stock—now including the additional […]

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