Hedge-Fund Sells The SPDR Gold ETF To Buy Shares In The World’s Biggest Gold Producer

hedgefund1“Touradji Capital Management LP, the New York hedge-fund firm that oversees about $2.7 billion, bought 2.23 million shares of Barrick Gold Corp., the world’s biggest gold producer, while selling shares in SPDR Gold Trust, the largest exchange-traded fund backed by bullion,” Asjylyn Loder and Rob Williams Report From Bloomberg.

“Touradji’s stake in Toronto-based Barrick, valued at $84.7 million, was 82 percent of its reported equity holdings, according to a filing with regulators and data compiled by Bloomberg. The fund sold off 126,000 shares of the SPDR Gold Trust during the quarter. The trust is an exchange-traded fund backed by bullion,” Loder and Williams Report.

“In a gold bull market, you can expect the equities to outperform gold, and in a bear market you would expect the stocks to get beat up more than the gold,” said Chip Hanlon, president of Delta Global Advisors Inc. in Huntington Beach, California. “I would say it probably means Touradji is increasingly bullish on gold.”

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The investment (GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.

Chart for SPDR Gold Shares (GLD)

 

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