BOSTON, April 7 Hedge fund manager John Paulson's returns dipped in March, hurt in part by losses in the gold market, two people familiar with the numbers told Reuters on Monday.
The Paulson Advantage Plus Fund dipped 7.4 percent last month, cutting its year-to-date gains to 2.6 percent. The Paulson Enhanced Fund, meanwhile, dropped 6 percent for the month, leaving it up 2.4 percent year-to-date.
The declines came as gold, a long-time favorite bet at Paulson & Co, the $21 billion hedge fund firm run by the billionaire investor, recoiled from a February rally.
Paulson shot to fame after earning billions of dollars betting against the overheated subprime market in 2007 and following that with another winning bet on gold in 2010. Those winning bets brought legions of new investors to his funds. In 2011, however, Paulson's Advantage Plus fund fell on hard times, losing roughly 52 percent.
The Paulson Credit Fund fell 2.5 percent in March while the Paulson Recovery Fund dipped 0.5 percent, leaving both up 5 percent year-to-date, according to the sources. (Reporting by Svea Herbst-Bayliss and Richard Valdmanis; Editing by Leslie Adler)