Fidelity manager prepares new gold investments amid market instability

Fidelity International portfolio manager George Efstratopoulos is halfway through a major reassessment of his positions in precious metals. According to Jin10, the experienced fund manager, managing assets worth approximately $3 billion, is reevaluating his gold strategy and preparing for a significant increase in his investments in this asset. Recent events in the gold market have confirmed the correctness of his analytical approach: having liquidated his position days before the catastrophic decline—the largest in forty years—Efstratopoulos now plans to reverse his stance.

Manager’s Tactic: Falling Trap

The manager clearly articulated his investment stance: “If gold drops another 5-7% from current levels, I will begin large-scale purchases.” This approach demonstrates the manager’s confidence in the long-term prospects of the asset. Despite speculative bubbles being deflated following the recent plunge, Efstratopoulos is convinced that the fundamental factors supporting gold’s value remain intact and strong.

Last year, the fund managed by this manager showed an impressive 20% annual return, confirming the effectiveness of his investment approach and ability to seize market opportunities.

Fundamental Reasons for Gold’s Rise

Efstratopoulos cites two key macroeconomic factors that, in his opinion, will continue to support gold prices. First, persistent inflation remains a challenge for the global economy, and second, a long-term trend of US dollar devaluation. These factors have historically increased gold’s attractiveness as a hedge against currency and price risks.

The manager emphasizes: “We aim to buy assets on market dips because, from a portfolio diversification perspective, gold significantly enhances the resilience of the investment portfolio and reduces its volatility.”

Access Tools and Portfolio Restructuring

The main instruments the manager uses to gain exposure to gold include ordinary ETFs, ETCs (Exchange Traded Commodities), and shares of gold mining companies. The current plan involves increasing the gold allocation in the fund’s structure to approximately 5%, reflecting a long-term reinvestment strategy at current reduced levels.

Thus, the experienced manager’s position demonstrates a classic approach to countercyclical investing—buying when most of the market is driven by fear and holding the position based on fundamental macroeconomic trends.