Paulson & Co to establish group to improve gold company returns

PAULSON & Co, a US hedge fund which is led by gold bull, John Paulson, is to establish a group of investors that will attempt to extract better returns from gold mining companies following years of under-performance, said Reuters.

Delbrook Capital, an investment company, confirmed with Reuters that it was part of the grouping which will be called The Shareholders Gold Council (SGC). Other potential investors to join the SGC are Livermore Partners and Tocqueville Asset Management, said Reuters citing an unnamed source.

BlackRock and Van Eck Associates, two of the biggest mining sector investors, are also in discussions to join the group of hedge funds and institutional investors, the source added. The Canadian gold-mining index has lost 40% of its value in the past decade, compared with a nine percent gain in the benchmark TSX index and a 95% rise in the S&P 500. Gold has risen 46% in the same period, said Reuters.