Insch Capital Management SA, the investment adviser to the Insch Insight Limited funds, has launched Kintore – an actively managed gold/currency investment strategy.
Kintore builds on the strategy applied to Insch Insight’s gold-based ‘Goldilocks’ Class C Share and on Insch’s Kintillo currency cross-rate programme. The strategy is only available to institutional and professional / HNWI investors via the Insch Insight fund, with a minimum investment of USD100,000, or a managed account, with a minimum of USD250,000.
“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,” says Christopher Cruden, CEO of Lugano-based Insch, an alternative investment management group.
In-depth research recently published in Global Quantitative Strategy Monthly has strongly indicated that if gold is treated as a currency and traded systematically against other leading currencies, the results can be spectacular even during periods of gold price stagnation or decline.
Insch analysis, working off the historic performance of Goldilocks, which since launch 2010 has been one of the best performing managed gold investments available, has established that gold/currency crosses have the potential to generate excess alpha and to provide a strong gold hedge.
In the past five-and-a-half years, Kintore’s pro forma performance indicates positive gains of over +65 per cent during the worst ten months of gold price declines, which cumulatively totalled losses of more than -56 per cent.
In the Kintore metric, gold is traded against the Australian Dollar, Euro, Japanese Yen, Swiss Franc, British Pound and US Dollar. Systematic trading decisions are generated by evolved versions of the core algorithms employed for Insch’s Kintillo currency cross rate investment programme that was originally developed in the 1990s.
“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,” says Cruden. “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.”
