Indiana Grain Company, LLC

Posted: 03/09/10

By: tomgrisafi

Both John Paulson and George Soros are investing in NovaGold, a mining operation focused on discovering gold.

NovaGold announced it would issue stock to Soros. His purchase came after NovaGold made a similar statement that it was considering selling stock in itself to Paulson.

Soros, 80, had called a market bubble in gold in January. But his Soros Fund Management bought up stock in SPDR Gold Trust, an exchange traded gold fund which Paulson, via his Paulson & Co., is a big stakeholder.

Soros upped his stake in the ETF on March 1.

Paulson has been dubbed a “gold bug,” but David Einhorn and Paul Tudor Jones are also bullish on gold. Paulson & Co., headquartered in New York, has a fund dedicated to investing in gold.

Finding a hedge fund manager on par with Soros or Paulson is a tall order. Soros, a billionaire, is a hedge fund legend whose 1992 currency play netted him $1 billion. Paulson made a successful bet against sub-prime mortgage, turning Paulson & Co. into a $10 billion hedge fund into a $30 billion investment powerhouse in 2008.

Source: Bloomberg, AP, Hedge Fund Industry Newswire

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