Precision Funds sells off small metals holdings as gold and copper prices soar
WA-based Precision Funds is exiting smaller positions in gold, copper, lithium, zinc, and coal following a dramatic shift in market sentiment driven by budget reform uncertainty.
Portfolio managers Dermot Woods and Andy Clayton from Precision Funds Management are selling out of smaller holdings in specific metals. The executives noted that rising commodity prices have driven strong gains for natural resource investors starting in August. Uncertainty regarding capital gains tax reform is causing a bid from consumer stocks toward high-performing commodities. Woods stated the $205 million fund, which has returned 17% per year since its launch nearly a decade ago, is maintaining a cash buffer to manage volatility. The strategy involves taking profits and rotating into counter-cyclical investments to benefit from the mining portfolio's gains. Woods characterized the current market environment as favorable for commodities but unfavorable for consumer stocks.
