Sunday, 21 December 2014
Last updated 2 hours ago
May 26 2011 | 10:49am ET
Lots of hedge funds are high on gold, and many others can't get enough silver. But only one, as far as we know, has chosen a girl's best friend as its chief inflation hedge.
Covenant Financial Services said this week that it has poured some of its $275 million in assets into building a portfolio of "large, rare and highly-sought-after" diamonds. The Oklahoma City-based firm has been buying the precious stones since November instead of gold or oil.
"One of the trends we are seeing now is an enormous multi-generational transfer of wealth take place from the West to the East, and moving a small portion of our capital into diamonds is one of the ways we are profiting from this," Steve Shafer, chief investment officer, said. And that transfer is taking place at just 50 cents to 60 cents on the dollar.
Covenant plans to hold the stones for between one and three years.
Diamonds and other gems currently make up less than 5% of Covenant's assets.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.