John Paulson Starting New Gold Fund

David Shvartsman submits:

It’s been a big week for the cottage industry of John Paulson-watching.

The Paulson & Co. fund manager is set to launch a dedicated gold and gold mining equity-focused fund at the start of next year, in which he’ll invest $250 million of his own money.

You may recall that Paulson’s earlier forays into gold ignited a new rush into gold by hedge funds and investors piggybacking on the trades of sophisticated hedge fund managers. JP’s new fund signals his continued positive outlook for the precious metals sector over the intermediate to long-term.

That’s not all that’s happening in the world of John Paulson. Investors have pored over his firm’s recent 13-F filing and letter to investors, while hiscomments on Bank of America (BAC) (Paulson & Co.’s largest position in the financials sector) have fueled publicity over a divergence of opinion with bank analyst Meredith Whitney on the stock’s outlook.

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