A top Brazilian hedge fund is betting on gold after Russian sanctions
One of Brazil’s largest hedge fund managers is betting on rising prices for precious metals after the US and other allies imposed financial sanctions on Russia in response to its invasion of Ukraine, including the freezing of certain central bank assets.
SPX Capital, which manages about 64-billion reais ($12.7-billion), built a long position in precious metals, especially gold, during the past few weeks, Ylan Adler, a partner and head of commodities at the firm, said in an interview.
“These events are a game changer,” said Adler. “Central banks will likely boost their purchases of real assets and, if possible, store them under their own custody, creating additional demand for gold.”
Gold-backed exchange-traded funds have been drawing significant inflows as investors seek haven assets amid the geopolitical turmoil and accelerating inflation. Another large Brazilian hedge fund manager, Legacy Capital, is also seeking to increase its long position in gold, which has risen almost 10% this year to $1 986 per ounce, near a record.
In addition to its commodities bet, SPX scooped up defense stocks in Europe recently, according to a note sent to clients on Friday. The firm was created by a group of traders including Rogerio Xavier in 2010 and its flagship fund posted its biggest jump since 2017 last year.
Year to date, the fund is up 7.11%, compared to a 1.77% gain for the CDI benchmark rate used by the industry.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
