Walker Crips duo slash 'crowded trade' gold by 20%

Walker Crips managers Steve Bailey and Jan Luthman have cut exposure to gold ETFs by 20% deeming it a ‘crowded trade'.

The pair had exposure in the £181m UK Growth fund and £17m UK High Alpha, 2% and 3.4% in each fund respectively, but slashed this by 20% on Friday when gold bullion hit yet another record level of $1,877. "We think gold has become a crowded trade and see more risk to the downside than the upside, while equities are cheap by comparison," Bailey said. The managers sold when gold hit $1,855. They introduced the position in June 2007, at the start of the banking crisis, when bullion was about $730 an ounce. In sterling terms, Bailey said, this was just £361 compared to £1,118 it reached o...