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$5 Billion Hedge-Fund Firm Switches Holdings To Physical Gold

Posted By admin On July 15, 2009 @ 11:58 am In Money Watch | Comments Disabled

Saijel Kishan
Bloomberg [1]
Wednesday, July 15, 2009

Greenlight Capital Inc., the $5 billion hedge-fund firm run by David Einhorn, told investors it switched all of its holdings in a gold exchange-traded fund into bullion during the second quarter.

“At a minimum this will provide some savings as the costs of storing gold are less than the fees” for the SPDR Gold Trust, the New York-based firm said yesterday in a letter to investors.


$5 Billion Hedge Fund Firm Switches Holdings To Physical Gold 250509BANNER [2]

Einhorn, 40, told clients in January he was buying gold for the first time amid the threat of inflation from higher government spending. The firm, started in 1996, held 4.2 million shares of SPDR Gold Trust in the first quarter, making the gold- backed ETF its biggest holding. Gold has climbed 5.8 percent this year.

The firm’s Greenlight Capital LP fund gained 16.3 percent in the second quarter, bringing its return this year to 21.5 percent boosted by investments in Ford Motor Co. debt, according to the letter, a copy of which was obtained by Bloomberg News. The fund lost 23 percent last year.

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URLs in this post:

[1] Bloomberg: http://www.bloomberg.com/apps/news?pid=20601213&sid=arz6MqVbTVBs

[2] Image: http://prisonplanet.tv/signup.html

[3] Gold fund’s holdings jump on rush to bullion safety: http://www.prisonplanet.com/gold-fund%e2%80%99s-holdings-jump-on-rush-to-bullion-safety.html

[4] Gold Bears Pull $20.8 Billion as BlackRock Says Buy: Commodities: http://www.prisonplanet.com/gold-bears-pull-20-8-billion-as-blackrock-says-buy-commodities.html

[5] Soros Buying Gold as Record Prices Seen on Stimulus: http://www.prisonplanet.com/soros-buying-gold-as-record-prices-seen-on-stimulus.html

[6] Soros Privately Doubled Gold Investment While Publicly Trashing Precious Metal: http://www.prisonplanet.com/soros-privately-doubled-gold-investment-while-publicly-trashing-precious-metal.html

[7] Hedge Funds Bought Gold in Biggest Rally Since 2011: Commodities: http://www.prisonplanet.com/hedge-funds-bought-gold-in-biggest-rally-since-2011-commodities.html

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