1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (245) 

Hugh Hendry Still Bullish on Gold

October 26, 2012 | About:

One of the top hedge fund managers in the world, Hugh Hendry, gave a one-hour talk about the stock market, Japan and China.

Hendry was one of the few money managers who made money in 2008 during the financial crisis; his firm made 50% returns.

During the Q&A Hendry was asked about his updated views on gold. He said, "I am long gold and short the S&P."

Hendry noted that the intervention of QE in 2009 has made this pair trade less predictable than in years past. Despite Hendry's relative bullishness on gold, he is petrified of owning gold mining stocks.

"I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity. The risk premium goes up when the gold price goes up. Societies are more envious of your gold at $3000 than at $300. And there is no valuation argument that protects you against the risk of confiscation. And if you are bullish gold why don’t you buy gold ETFs, gold futures or gold bullion.”

Hendry's last words of advice to the audience were:

"I have resigned from the professional undertaking of coin flipping. I am not here to tell you where gold’s going to be. I have no idea. That’s my existentialism. I am a student of uncertainty, I have no idea where the stock market is going to be. So when I am creating trades in my portfolio for my clients, I am agnostic. I just want to enhance the probability that I make money come what may."

Watch live streaming video from The Economist at livestream.com.

Rating: 2.7/5 (3 votes)


Please leave your comment:

Performances of the stocks mentioned by matsandalex

User Generated Screeners

nec5555Pat Dorsey Moat 5Y v1
nec5555Pat Dorsey Moat 5Y
opadovaniP Median2 No DIV
cegdevelopmentthe best managers
cegdevelopmentprof managers
cegdevelopmentguru goals
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat