Toro
Diamond Member
What do you do if I may ask? Subordinated debt? Distressed securities?
Btw, Treasuries have outperformed gold. The following chart takes spot gold price divided by the 30-year Treasury. US bonds price have appreciated more than gold price. We also get some interest to boot.
![]()
I run an investment department. Most would describe me as an allocator though that's not quite it. I used to be an equity PM. Professionally, in debt, I own senior loans, mezz and distressed. The insurance stocks are in my PA.
Gold has sucked this year and has been in a brutal bear market since it peaked in April 2011. Gold has been a personal trade too. When I ran my fund 10 years ago, I was told I was the largest shareholder of gold stocks in the SE. I was buying gold stocks when it was $320 and people were telling me I was an old man and - literally - laughing in my face. I had no idea gold was going to go up to $1921 though, and the stocks would go up 10x-20x. I thought it might go to $500-600 one day. But I'm under no illusions. Gold is a commodity/currency that is to be traded, not owned. It is down 37% from the top, and silver is down by almost 60%. It is my impression that most people who are in gold don't understand commodities and how to trade them.
Nice. I always thought mezzanine and distressed presented interesting opportunities.
You ran a hedge fund? You don't come across as a sociopath.Just kidding...
I'm glad I've had a chance to post more on here. It makes for interesting discussion. I had ankle surgery a week ago, so I'm out of commission for the next two weeks.
Btw, you raise a critical about gold. The vast majority of people don't understand how the trade works or why we trade commodities.
I hire hedge funds. I don't run one. I'm only a semi-sociopath.