Are Bonds So Expensive That You Buy Gold? Hedge Funds Think So
- Fund managers opting for gold as bond valuations surge
- Morphic Asset says recession fears justify gold position
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Hedge funds are turning to gold for refuge as the world’s stockpile of negative-yielding debt grows bigger by the day.
The yellow metal is favored by Ensemble Capital’s Damien Loh, a former options trader at JPMorgan Chase & Co., as global bond valuations reach nosebleed territory. AMP Capital Investors Ltd.’s dynamic fund is also backing bullion, while Morphic Asset Management Pty is betting on gold to outperform the dollar.