Hedge funds are betting on gold in 2020 as an attractive way of getting returns amid unprecedented central bank stimulus during the coronavirus pandemic, the Financial Times reported Tuesday.
by Shalini Nagarajan
Business Insider
Large numbers of major hedge funds are betting on gold, on expectations that central banks’ unprecedented economic stimulus packages during the coronavirus crisis will prompt devaluations in major currencies, the Financial Times reported Tuesday.
Elliott Management, Caixin Associates and Dymon Asia Capital are among the funds to bet on gold so far in 2020, the FT said. Gold’s price is up 12% year-to-date, according to Markets Insider data.
New-York based Elliott Management, which manages about $40 billion in assets and is run by renowned investor Paul Singer, said in a letter to clients last month that gold was “one of the most undervalued” assets available and its fair value is “multiples of its current price,” the FT reported.