Investec's Mundy: Gold has hurt us, but we are holding on

The head of Investec Asset Management's value team, Alastair Mundy, is holding on to his out of favour gold positions on expectations of an upcoming bear market.

The contrarian investor (pictured) is concerned both bond and equity markets will see sharp falls if investors begin to doubt the actions of central banks. He said: "We worry that the next bear market will involve equities and bonds going down, so it is important to keep cash and other assets to protect the portfolio." Mundy's contrarian investments have hurt the performance of the £2.6bn Investec Cautious Managed fund this year. Over the year to 3 November it is the worst performing fund in the IMA Mixed Investments 20%-60% Shares sector, down 3% versus an average positive return of ...