Hedge fund sells equities, buys $200 million in physical gold

Investec’s Alastair Mundy has moved a significant portion of his £2.5bn Cautious Managed fund into gold bullion for the first time following savage price falls for the precious metal.


Mundy (pictured), who has been reducing his exposure to equities after a variety of indices hit record highs, said he has put 5% of his portfolio into physical gold in the last few weeks, after the precious metal fell in price by more than 25%.


From a peak of $1,796 last October, gold fell to a low of $1,322 last month, before rebounding some way. It currently trades around $1,450.

“We felt, with Japan announcing more stimulus, investors would get more bearish,” he said. “For us, gold is also a good diversifier for the fund as it is a hard currency replacement.

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“It is also in reasonably finite supply, which contrasts nicely to paper money. The chances are, in the face of all this money printing, gold’s allure will increase significantly.”

Read more: http://www.investmentweek.co.uk/investment-week/news/2266059/investec-s-mundy-buys-physical-gold-for-first-time-after-selloff#ixzz2Sf1g0ymU
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