Largest Gold ETF Investor Dips Into Bank Of America In A Big Way

Paulson & Co., the hedge fund run by billionaire John Paulson, has bought 168 million shares of Bank of America (BAC), becoming the bank’s fourth largest shareholder. That’s a $2.7 billion stake, CNBC’s Charlie Gasparino reported late Wednesday, citing public filings.  Gasparino said he didn’t know the reason behind Paulson’s move, or any other details of the purchase (See The Full SEC Filing Here).

This is Paulson’s second-largest holding, after SPDR Gold Trust (GLD). The billionaire manager became the No. 1 holder of the  the biggest gold-related ETF in Q1 of this year, buying 31.5 million shares, or 8.6%, according to filings that his firm, Paulson & Co., made with the SEC.

This should send investors a boost of confidence in bank stocks and finacial related ETFs such as the Direxion Daily Financial Bull 3X Shares (FAS), Ultra Financials ProShares (UYG), and Financial Select Sector SPDR (XLF).

The ETF (XLF) holds a 7.93% stake in Bank of America. The ETF (UYG) holds a 5.68% stake in Bank of America. The ETF (FAS) holds a 6.12% stake in Bank of America.

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