Wingate Asset Management wants $1 billion

Wingate Asset Management, the global stock investor backed by Australian Unity Investments, says it can bolster the size of its fund 20 fold in two years.

The Melbourne-based firm’s founder Chad Padowitz says it is no great stretch for the firm to increase its assets under management to $1 billion from $50 million with the same five people who currently work at the firm.

Padowitz’s fund has had an annual net return of 4 per cent in Australian dollar terms since it was founded in late 2005. From January 1, 2007 to December 31, 2011 the fund was ranked No. 1 among 70 peers, according to Morningstar. The median fund performance was minus 6.8 per cent a year. Wingate had a minus 1 per cent return.

Australian investors have invested about $800 billion in global stocks.

“There is a lack of solutions out there,” says Padowitz.

Padowitz won’t disclose his fund’s investment strategy but it starts around options which he says gives the fund an automatic gain of 7 per cent.

The University of Witwatersrand, Johannesburg graduate says if markets over the next five years rise five per cent per annum, Wingate “can double that.”

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‘It’s crazy’: More gold than bonds in super portfolios as funds rethink defensive plays

The shifting global economic landscape and its impact on currency markets are forcing asset owners to re-think the defensive portion of portfolios as traditional hedging techniques become less effective and new ones emerge. The Fiduciary Investors Symposium heard that for one fund that’s led to gold overtaking government bond allocations.

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