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Money managers under the microscope

Moonraker finds hedgies have a Goldfinger


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

ML note – hedgies sell equities


Bank of America-Merrill Lynch’s latest “Hedge Fund Monitor” note shows managers are aggressively selling equities and building a record net long position in 2-year Treasuries.

rtxcfqpAccording to the note, hedge funds last week continued to decrease aggressively their net long position in S&P 500 futures and added to net shorts in the Russell 2000.

John Paulson gains Buffett’s Midas touch


FINANCIAL/Hedge fund manager John Paulson, who made a fortune currectly betting on the U.S. housing market collapse in 2007 and then the broader financial crisis last year, is starting to wield a Midas touch long associated with Warren Buffett.

Thanks to its bearish views, Paulson & Co over the past few years vaulted to the top ranks of the world’s largest hedge fund, multiplying its assets and earning Paulson a king’s ransom.

Subprime master Paulson’s Midas touch


Hedge fund managers may get a lot of stick in these troubled times, but there are some that more traditional investors may want to listen to.

rtrn02xJohn Paulson, for example.

The 53 year-old American, no relation of Hank, is having a good financial crisis. In 2007 he pulled off one of the most lucrative gambles in investment history — amassing a personal fortune of nearly $4 billion betting against the sub-prime mortgage sector.

from Global Investing:

The final frontier market

As a fallout in emerging markets -- once hailed as a safe-haven from the global financial crisis -- gathers pace, asset managers are scrambling for newer markets.

What about North Korea? The Stalinist country boasts large untapped natural resources with deposits of gold, coal, zinc and other minerals. It has virtually no capital markets and its banks are all state-owned -- making it a true safe haven from the global financial crisis.