Perth-based Argonaut Funds Management has launched a pure gold equities fund to capitalise on the relative underperformance of Australian gold stocks.
Argonaut is an investment house technically driven and focused on metals and mining, energy, businesses and contractors that service the natural resource sector. It was already operating two resource-focused funds based in the Tier 1 mining jurisdiction of Western Australia .
Argonaut’s head of funds management, David Franklyn, said the gold market created a “unique countercyclical investment opportunity”, which had occurred against a backdrop of increased geopolitical tensions, armed conflicts, growing social unrest in many countries and inflationary pressures.
“The time to buy gold shares is when they are out of favour,” he said. “Gold equities represent compelling long term value and we believe we can build a high quality portfolio that will deliver strong investment returns over time.”
The fund is targeting an initial $5 million, with ultimate fund size of $50m.