Funds Hub

Money managers under the microscope

Moonraker finds hedgies have a Goldfinger

July 30, 2009

With a headline like that, you’d think this would be a story about investing in Bonds.

rtxge4zBut in fact a survey by boutique fund firm Moonraker Fund Management shows U.S. hedge fund managers are buying physical gold to protect their wealth against high levels of inflation.

A recent fact-finding tour by Jeremy Charlesworth, CIO of Moonraker and manager of the commodities and global opportunities funds, found 20 out of 22 had been buying gold out of concerns quantitative easing would fuel price rises.

Charlesworth sees further gains in the gold price – which has risen from just over $800 an ounce in January to $930 now — and plans to raise exposure in both his funds.rtr246nk

“Gold is the ultimate currency, performing best when economies are at extremes, whether this is inflationary or deflationary,” he said.

“The managers I met in the U.S. know that if the politicians get the quantitative easing programme wrong then the value of money relative to real assets will dwindle.”

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see