Lugano-based alternative asset manager, Insch Capital Management, has developed an investment strategy that treats gold as if it were a major currency.
The firm is waiting for regulatory approval from the British Virgin Islands (BVI) to add this strategy to its existing off-shore gold fund, Goldilocks.
Goldilocks was developed in December 2009 as a long-only gold investment strategy that is offered as both managed accounts and a fund. Both strategies performed well from inception to August this year, coming second to only State Street Global Adviser’s SPDR Golds Shares in a peer group of 18 major gold investments.
Kintore allows investors exposure to gold without being penalised by falling prices as is the case with long only strategies. The firm says it is bi-directional and price agnostic, so it can make money in falling as well as rising markets. As Insch’s chief executive officer, Chris Cruden, says, the strategy is essentially to go long when the price of gold is rising and short when the price falls. Kintore is also daily traded.
Trading gold as if it were a major currency means it trades against US dollars, euros, Swiss francs, sterling, yen and Australian dollars. It acts as the base currency in the trades.
Currently Kintore is only available through managed accounts, with a minimum investment of $250,000 (€223,000). However, soon investors will be able to access Kintore through Goldilocks, subject to approval from the authorities in the BVI, expected in mid-October. The approach will shortly be extended to form the strategy driving the Insch Goldilocks Fund.
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