Value Partners (0806) founder Cheah Cheng Hye has significantly increased his exposure to gold and is advising other investors to increase their exposure to precious metals, Bloomberg News reported.
Cheah, often dubbed Hong Kong’s “goldenfinger,” has allocated roughly a quarter of the assets at his US$1.4 billion family office to precious metals, up from about 15 percent a year earlier, an increase of 10 percentage points, the report said.
Cheah recommends that investors build a diversified portfolio with 60 percent in equities, 20 percent in bonds, and 20 percent in precious metals, primarily gold. While he did not disclose the specific performance or holdings of his family office, he expressed bullishness on silver, which he noted has surged by nearly three times in the past year, far outpacing gold.
Cheah began investing in precious metals with a small allocation in 2008, and ten years later, he accelerated his investments by purchasing large amounts of physically backed gold exchange-traded funds, according to the report.
This strategy has resulted in total gains of US$251.1 million, or a 167 percent return. He has also invested in gold mining stocks, physical gold bars, and coins.
