paulson loses $1b in 2 days., page-14

All4One

Paulsen almost certainly has his own money in the fund.
1. It is a good marketing tool to sell to investors (people like the idea of partnering John Paulsen).
2. It keeps him focused. He doesn't have to worry about managing two separate gold positions.
3. It automatically resolves potential governance issues relating to insider trading and conflicts of interest.