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china fund news reporter cao wenjing

as the price of gold continues to rise, the operations of the world's largest hedge fund, bridgewater associates, on gold etfs have also attracted much attention from the market.

comparing the 2023 annual report and the 2024 interim report, in the first half of this year, bridgewater sold a large number of gold etfs and has withdrawn from the list of top ten holders of the three gold etfs it held.

it is worth noting that in mid-july this year, ray dalio, founder of bridgewater fund, publicly supported gold.

many industry insiders said that bridgewater (china)'s reduction of its holdings in gold etfs does not necessarily mean that it is bearish on gold, but may be part of its asset allocation adjustment. the allocation adjustment of multinational funds is sometimes based on multiple considerations, and usually a diversified investment strategy is adopted to spread risks.

bridgewater sells off gold etfs

wind data shows that as of the end of 2023, bridgewater's three bridgewater all weather enhanced china private equity securities investment funds held three gold etfs, with a total holding of nearly 190 million shares.

among them, as of the end of 2023, bridgewater (china) investment management co., ltd. - bridgewater all weather enhanced china private securities investment fund no. 3 held 82.6646 million shares of huaan gold etf, ranking as the second largest holder.

as of the end of 2023, bridgewater all weather enhanced china private equity fund iii, bridgewater all weather enhanced china private equity fund i, and bridgewater all weather enhanced china private equity fund ii held 46.6248 million, 9.2942 million, and 8.7106 million shares of bosera gold etf, respectively, ranking the first, second, and fourth largest holders.

in addition, the 2023 annual report of another gold etf shows that as of the end of 2023, bridgewater (china) investment management co., ltd.-bridgewater all weather enhanced china private equity investment fund no. 3 held 31.5935 million shares, ranking first. bridgewater (china) investment management co., ltd.-bridgewater all weather enhanced china private equity investment fund no. 2 and bridgewater (china) investment management co., ltd.-bridgewater all weather enhanced china private equity investment fund no. 1 held 5.7018 million and 4.681 million shares respectively.

based on the closing prices of the three gold etfs at the time, bridgewater (china) held gold etfs worth as much as 987 million yuan at that time.

compared with the 2024 semi-annual report, as of the end of the second quarter of this year, products under bridgewater (china) have withdrawn from the top ten holders of the above three gold etfs.

according to the interim and annual reports of gold etfs in the past few years, bridgewater (china)'s products first appeared among the top ten holders of the above-mentioned gold etfs in the first half of 2022. at that time, gold had not yet started its magnificent rise, and bridgewater had already made arrangements in advance.

a qdii fund manager in shanghai said that bridgewater's reduction of its gold etf holdings does not necessarily mean that it is bearish on gold. it may reflect its judgment on the current economic situation and market trends. against the backdrop of increasing global economic uncertainty, bridgewater may believe that gold has limited room for short-term gains, or that other asset classes offer a better risk-return ratio. at the same time, the allocation adjustment of multinational funds is sometimes due to more complex reasons, and usually a diversified investment strategy is adopted to diversify risks.

an overseas multi-asset investment manager in shenzhen believes that bridgewater's reduction of gold etf holdings may be part of its asset allocation adjustment. for example, it can buy back the same amount of gold etfs overseas to maintain the overall investment in gold, or control the drawdown for profit-taking purposes. because multinational funds often adjust their investment portfolios according to market conditions to manage risks, bridgewater's reduction of holdings may be to reduce specific risks related to gold.

it is worth noting that in early july this year, dalio, the founder of bridgewater fund, publicly supported gold. he said that gold deserves to occupy a considerable part of the investment portfolio, and even at a record high, gold is still attractive. gold is an effective diversification tool. if investors hold a neutral view on the market, gold should account for more than one-tenth of the investment portfolio.

gold may still have room to rise in the medium and long term

pay attention to uncertainties such as the fed's interest rate cut and the general election

since the beginning of this year, the international gold price has hit new highs, and the index funds tracking gold have performed well. the china asset management gold stock etf rose by 27.90% in the first eight months of this year, ranking first in the year's stock etf growth. in addition, gold-related etf products such as e fund, guotai, bosera, and huaan also rose by nearly 20% in the first eight months.

recently, the international gold price has continued to fluctuate at a high level after breaking through the new high of $2,500/ounce, while shanghai gold has performed relatively weakly and gold stocks have experienced a correction. as for the future market, liu tingyu, the manager of the yongying gold stock etf, believes that gold and gold stocks still have room for upward movement in the medium and long term. from a fundamental perspective, the global interest rate cut cycle has just begun. the continued decline in us inflation and the rising unemployment rate indicate that the conditions for the fed to cut interest rates have gradually matured. after the interest rate cut begins, the entry of trading funds may bring about the main upward trend of gold.

"gold and the us deficit rate have a long-term synoptic relationship. regardless of whether the republicans or the democrats are in power in the future, the fiscal deficit rate will be easier to rise than to fall, which is expected to support the long-term central rise in gold prices. secondly, from a trading perspective, the current largest gold etf (spdr) holdings are far from historical highs, which means that gold buyers have a large space to increase their positions and gold prices may not have peaked yet. finally, the continued trend of global central banks buying gold and the increasingly fierce international geopolitical game will also continue to catalyze gold prices in the future." liu tingyu said.

liang pusen, fund manager of qianhai kaiyuan gold etf, believes that in the medium and long term, international political factors remain complex, the global economy faces uncertainties, and allocating gold has certain insurance properties. the central price of gold is expected to continue to rise during the federal reserve's interest rate cut cycle.

guotai fund reminds that, in terms of current fundamentals, gold prices have hit a historical high, and short-term market trading fluctuations may be amplified. if the fed's expected interest rate cut in september is implemented, there may be a risk of a correction. however, the fed's general direction of maintaining "loosening + economic rolling down" will not change the positive trend of gold prices, which will be beneficial to gold prices in the medium term. we should continue to pay attention to it and consider buying on dips.