Bloomberg – The rout in gold that drove the metal into a bear market cut the number of hedge funds investing in bullion to the lowest level since 2010 as assets slumped 31 percent this year on losses and redemptions.
Performance declines tied to volatility and withdrawals led either to closures or a shift in strategies, Farhan Mumtaz, an analyst at EurekaHedge Pte Ltd., the Singapore-based fund-research company, said in an interview. The number of funds investing in gold fell to 290 globally by May compared with 310 in December, and their assets shrank to $22.2 billion from $32.1 billion in the same period, he said on June 5. EurekaHedge has tracked gold-investing hedge funds for 10 years, he said.
