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A spotlight on RMG Wealth's private client performance
by Annabelle Williams on Feb 29, 2012 at 00:01
Shorting silver and buying up Asian debt are smart moves, maintains RMG partner and former Wealth Manager cover star David Man (pictured), who is also backing the Canadian dollar and the Norwegian krone
The portfolio has a 4% position in commodities – the bulk of which is a short against silver – and while the play has been tricky since the start of 2012, David Man maintains the call will pay off.
‘Our view is that as we see a cyclical slowdown in the global economy, silver will struggle. We have made money but it has been tough over the last two months because of the reaction to gold,’ he said. ‘Silver has gone up on the back of gold’s rise but we are pretty happy with it in general.’
Gold, meanwhile, is yet to feature in the portfolio despite much recent pro-gold sentiment.
‘One glaring omission we have is gold. We have never really invested in gold and at some stage in 2012 we would like to be buying some gold. But we don’t like the entry point so we would look for it to correct and then buy.’
One boost to performance over the last year came from shorting Spain.
‘Spain is hugely reliant on two areas, construction and banking, and at the time both were looking particularly vulnerable,’ Man said. ‘I wouldn’t say that now; there are other markets that look more vulnerable.’
Asian debt also features prominently in the portfolio and Man says he would ‘like to hold it for years’.
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