The Stenham Gold fund was launched in 2003 as a response to the then widening discrepancy between the prices of bullion and underlying gold equities. The aim of the fund of hedge funds (FoHF) was to exploit this spread, where traditionally for every $1 rise in the price of bullion there would be a $2 rise in the equity. The initial structure was 60% equities and 40% bullion.
Today the fund has rebalanced slightly in favour of bullion, with the split being in the region of 55% bullion and between
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