Hedge fund supremo John Paulson has reportedly lost almost $1bn of his personal wealth since the end of last week after the price of gold crashed.
Some 85% of the $9.5bn Paulson has invested across his hedge funds is held in gold share classes, Bloomberg reported.
The precious metal plummeted 9.3% on Monday to take two-day losses to 13%, creating a paper loss of $973m for Paulson and taking his personal year-to-date losses to $1.52bn, according to the news agency.
The price of gold staged a slight recovery yesterday but failed to reclaim the $1,400 level below which it dropped on Monday, and remains around 25% below its September 2011 peak.
Paulson is sticking with his gold positions, however, in the belief the metal remains the best way to hedge against inflation and devalued currencies.
John Reade, a partner at Paulson & Co, said in a statement the manager had created the gold share class in April 2009 at an average cost of $950 a troy ounce, meaning he had still made a sizeable return on the position.
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Dispute over structure of combined group
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