For one gold hedge fund, indirect bets on the precious metal weren't good enough. It wanted the real thing. And it’s paying off.
Hinde Capital sold off much of its equity portfolio—comprised primarily of mining companies—last year and moved into gold. Gold has soared this year, rising 29%, and as a result, the Hinde Gold Fund is up 44% this year.
What’s more, the gilded rally is far from over, according to Hinde’s Ben Davies.
“Gold is as undervalued as in 2001 and 2002,” he told Bloomberg News. “We’re in an early stage of inflation.”
Until last October, the Hinde fund was split evenly between bullion and gold-related equities. Now, the former accounts for at least 75% of its portfolio, with the balance held in stocks of smaller miners.
