Gold replacing dollar as key reserve asset. Stock image.
Waratah Capital Advisors Ltd. is betting on gold to lift its returns this year as investors pile into the asset to shelter their wealth during the global trade war.
“We now live in a world that is losing faith in the US dollar,” Co-Founder Brad Dunkley said in a letter to investors seen by Bloomberg News. “Central banks and ordinary citizens, particularly in India, China and developing markets, have increasingly turned to gold to preserve their purchasing power.”
Dunkley said he expects gold will “do much of the heavy lifting” for the firm’s funds in 2025. Still, two flagship funds, Waratah One and Waratah One X, lost 3.3% and 5% in the first quarter, respectively. The firm’s long-biased fund gained about 2% and its thematic fund climbed 4.5%.
Waratah, founded in 2010 by Dunkley and Blair Levinsky, manages about C$3.8 billion…
