Billionaire hedge fund manager John Paulson is launching a new gold fund, which will include $250 million of his own personal investment, the Wall Street Journal reported on Wednesday.

Paulson is among a number of hedge funds managers stocking up on the precious metal, for centuries considered a hedge against inflation, as governments around the world ramp up spending to combat recession.

Citing three investors, the Journal said the fund will focus on gold mining stocks and gold-related investments.

Paulson spoke about the new fund, which will begin on January 1, at a meeting with his investors in New York on Tuesday.

Paulson's combined gold and gold-related investments make up about half of his firm Paulson & Co's holdings.

Paulson already owns big stakes in gold miners AngloGold Ashanti Ltd , Kinross Gold Corp and Gold Fields Ltd .

He is also by far the biggest shareholder of SPDR Gold Trust, the world's largest gold-back exchange-traded fund (ETF). His investment in the ETF is valued at about $3.53 billion on Wednesday.

A spokesman for Paulson & Co declined to comment.

(Reporting by Frank Tang; Editing by Christian Wiessner)