Gold Will Slump on Hedge Fund Redemptions, Pension Says
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Gold may slump as much as 20 percent over the next two months as hedge funds sell to meet redemptions from investors, said Michael A. Gayed, the chief investment strategist at Pension Partners LLC.
Investors probably will pull more money out of hedge funds after this year’s drop in global equity markets, according to Gayed, who manages $140 million at New York-based Pension Partners. To meet the demand for cash, hedge funds may sell “substantial amounts” of their holdings in gold, which has rallied 29 percent this year, he said.