Insch Capital launches gold/currency strategy
Insch Capital Management, investment adviser to Insch Insight Limited funds, has announced the luanch of Kintore, an actively managed gold/currency strategy.
The new strategy builds on the manager’s existing Goldilocks Class C share and Kintillo currency cross rate programme. Kintore will only be available to institutional and professional/HNWI investors via the Insch Insight fund. The minimum investment is $100,000, or $250,000 via a managed account.
Christopher Cruden, CEO of Lugano based Insch, said: “The dynamic driving the launch of Kintore was the recognition that while many investors want, indeed require, gold in their portfolios, exposure to an unhedged long only holding of the metal can prove costly, so we’ve taken a different approach.”
The strategy is based on the idea that by treading gold as a currency and trading it systematically against other currencies, it can outperform even in periods when the spot gold price stagnates or declines.
Analysis of the Goldilocks strategy suggests that gold/currency crosses “have the potential to generate excess alpha and to provide a strong gold hedge,” Insch stated.
For Kintore, gold is traded against the Australian dollar, euro, Japanese yen, Swiss franc, British pound and US dollar. The systematic trading decisions are generated by algorithms that are evolved from Insch’s existing Kintillo currency cross rate strategy, originally developed in the 1990s.
Crudden added: “We firmly believe Kintore solves many of the problems faced by professional/HNWI investment individuals and institutions that are attracted by an investment in gold but are disappointed by the returns generated by many funds. We do not expect investors to be disappointed by Kintore which, on the basis of our extensive analysis of the numbers and, frankly, of the competition, we propose as a new and important solution to an old problem.”