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L1 Gold Fund co-manager says gold pullback is temporary
L1 Gold Fund’s AUD 1.5bn, long-short strategy has returned 235% since launching in February 2025, as gold has fallen about 20% since the late-February US-Iran conflict began.
Hedgeweek, citing a Bloomberg report, says L1 Gold Fund co-manager Raphael Lamm views the recent drop in gold prices as a temporary setback, supported over the medium to long term by high government debt and continued central bank demand.
The article also says Lamm, alongside co-manager Mark Landau, runs an AUD 1.5bn ($1.1bn) long-short gold strategy that has generated a net return of 235% since launching in February 2025, according to a fund spokesperson.
In the longer run, the managers point to deteriorating fiscal positions in major economies, particularly the US, and persistent central bank purchases as key drivers for gold, while shorter term performance remains sensitive to the US-Iran conflict, real interest rates, and upcoming inflation data.
Gold has retreated from a January record, the article notes, with higher energy prices and expectations for further Federal Reserve rate increases weighing on the non-yielding asset, and bullion down about 20% since the US-Iran conflict began in late February.
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