Blue Whale Capital’s Stephen Yiu is positioning for further upside in gold despite the recent price pullback, and has named the world’s largest gold miner Newmont as a key portfolio pick. Yiu, chief investment officer of the Blue Whale Growth Fund, on Tuesday acknowledged that the firm could be “a bit late to the party” on gold. But he added that lingering macroeconomic concerns — namely around the U.S. fiscal deficit , as well as the dollar potentially losing its global reserve currency status — could further fuel the precious metal’s momentum into next year. “We do think that, as far as the gold space is concerned, there could be some opportunities going forward, even though it’s already done quite well,” Yiu told CNBC’s ” Europe Early Edition .” Blue Whale recently took a position in Denver-headquartered Newmont, which owns gold mines in the U.S., Latin America, Africa and Australia. Yiu said the stock is now one of the top 10 names in the Blue Whale Growth Fund, the company’s flagship long-only global equity strategy which trades large-cap names in developed markets. Newmont last month reported a net income of $1.8 billion in its third-quarter earnings, with Q3 revenues coming in at $5.52 billion, above analysts’ estimates. The company produced an estimated 1.4 million attributable gold ounces during the three-month period, according to its earnings results. The company’s shares have soared 137% this year amid the gold rally. NEM YTD mountain Newmont Corporation. Gold surged above $4,000 for the first time ever in October as investors and central banks turn to the commodity as a protection hedge against the weakening dollar, geopolitical uncertainty and inflation risk. While prices have retreated in recent weeks as investors position for falling interest rates and cooling inflation, gold prices remain up more than 50% so far this year. Spot gold was seen up 0.4% on Tuesday afternoon at $4131.66, while gold futures were trading at $4,144.30. Outlining his position, Yiu observed how the post-Bretton Woods orthodoxy, which established the U.S. dollar as a global reserve currency, has been challenged by U.S. President Donald Trump’s policies this year. “It’s not just about the weakness in the U.S. dollar, which might not continue for next year, it could be the other way around. I think it’s the overall concern about the fiscal deficit and the U.S. dollar losing the status as a reserve currency.” @GC.1 YTD mountain Gold futures.
