View the article online at http://citywire.co.uk/money/article/a654191
Diary of a Dumb Investor: going for broke on Spanish gold
I'm taking a 'strategic gamble', as I'll call it, as I think I can afford to take more risk in my portfolio.
Sensible, I’d call it, dull even. My portfolio is diversified well in terms of assets (bonds, investment trusts, shares, funds, cash etc) and geographically – nothing that you couldn’t show your grandma in there.
I certainly don’t feel I have any particularly edgy investments. My recently-purchased shares in Hutchison China Meditech (HCM.L) seem a bit wacky at the moment, but maybe that’s just because they’re down.
My portfolio: Click to enlarge
I’m even increasingly confident that my long-suffering holding in BP (BP.L) will soon break even – let’s see what happens at the company’s results in a week or so.
I’m happy with my soaring emerging market funds, confident that the outlook is still generally good for countries in emerging regions including Asia and South America.
I’ve also been won over by the personalised service from my bond fund manager Stewart Cowley. Do all investors in his funds receive a personal email whenever they express any doubts? I certainly did, top service S! I’m going to hold onto this fund a little longer.
Dear Dumb Investor,
We love you and your thoughtful comments but can I point out one thing; the Old Mutual Global Strategic Bond Fund can short the government bond markets (and we are right now) so we can make money for clients when yields are falling and when yields are rising. Also we use currencies, corporate bonds and latterly have put some 50% of the fund into inflation-linked bonds. Since the beginning of the year your unit price has risen 2.7% which is a gain of 7.3% year-on-year.
Unlike long-only funds we aren’t there for you only in the good times for bonds…
All the best,
But I reckon I can afford to take on a bit more risk; take a gamble among all the investing. I need a wildcard in my portfolio and I think I’ve found just the thing: Aurum Mining (AURU.L), a rehabilitated AIM-listed mining company recovering from a failed attempt in the Kyrgz Republic, now attempting to get gold and tungsten out of the ground in Spain.
Analysts at WH Ireland introduced me to the shares, by way of some comments published on Citywire: ‘Aurum is effectively a new company and we do not believe the market fully appreciates that it has come out of its shell status and become an operating company with tangible projects,’ they said, adding that results from the company’s joint gold venture in Spain have been ‘very encouraging’.Since then, the company has announced upbeat drilling results, not that they’ve been noticed by the market. It feels a bit like hearsay, but convincing and exciting nonetheless. And unlike the rest of my portfolio, this is a gamble, I fully admit. Aurum, I’m on standby with my last 1k.
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by Daniel Grote on Feb 27, 2015 at 09:36