Perpetual excludes gold and crypto from portfolio due to lack of cash flow
Perpetual maintains a zero allocation to gold and cryptocurrencies because they do not generate cash flows. The firm advises clients seeking gold exposure to hold it physically as a risk hedge rather than through financial instruments.
Perpetual holds zero allocation to gold and cryptocurrencies. Christian Wienkamp explains that the firm's investment philosophy focuses on financing productive capital with a corresponding return expectation. Gold and Bitcoin are excluded because they do not generate cash flows, making discounted cash flow analysis impossible. Wienkamp states that the price of these assets is driven by sentiment or central bank buying rather than fundamental productivity. While the firm does not invest in these assets, they advise investors who desire gold exposure to hold it physically in sizes that serve as a genuine risk hedge for extreme scenarios, rather than through financial instruments. This stance is consistent across their family portfolio and external investor funds, emphasizing a clear conviction in asset class selection rather than offering a broad menu of strategies.