(Bloomberg) Hedge funds could learn a thing or two from exchange-traded fund holders, at least as far as the gold market is concerned. As a trade war between the U.S. and China broke out, bullion futures posted their best weekly gain in two years on demand for a haven. Unfortunately for the funds, they were too focused on interest rates to anticipate the move.Money managers pared their wagers on a gold rally to the lowest this year ahead of a Federal Reserve meeting where policy makers eventually raised borrowing costs. But the rate hike did little to pressure gold as trade tensions overtook the market. ETF investors were smart enough to look beyond the Fed as they boosted their bullion holdings to the highest in almost five years just as prices took off.
ETF Investors Outsmart Hedge Funds Who Miss Out as Gold Rebounds
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