Hedge Fund With 235% Return Says Gold Price Decline Is Temporary
New Delhi, September 25, 2026: Australian hedge fund manager Raphael Lamm, co-manager of the A$1.5 billion L1 Gold Fund, believes the recent decline in gold prices is temporary, arguing that several long-term factors supporting bullion demand remain in place. The fund has delivered a net 235% return through August since its launch in February 2025, according to a fund spokesperson.
Gold has faced renewed pressure after reaching a record earlier this year. According to reports, bullion has fallen about 16% since the US-Iran war began in late February, with higher energy prices, elevated real interest rates and expectations for tighter US monetary policy weighing on the non-yielding asset. Gold was reported trading around $4,286 an ounce in Sydney on Thursday.
L1 Gold Fund Maintains Long-Term Gold View
Lamm, who manages the fund alongside Mark Landau, said the recent headwinds affecting gold are temporary. He pointed to concerns over fiscal conditions in major economies, including US government debt exceeding $40 trillion, as well as continued central-bank allocations to gold as factors that could support bullion over the medium to long term.
The L1 Gold Fund uses a long-short strategy, holding positions in gold-related equities while using gold futures as a hedge. The fund has been using the recent decline to increase its exposure to gold equities. Its largest holding is reported to be Canadian miner Eldorado Gold Corp.
Short-Term Factors Remain Important
Despite the fund’s longer-term outlook, Lamm identified several factors that could continue to influence gold prices in the near term, including developments in the US-Iran conflict, real interest rates and inflation data. The combination of higher yields and a stronger dollar can create pressure on gold because the metal does not generate interest income.
The fund’s performance has substantially exceeded gains in both physical gold and the VanEck Gold Miners ETF over the period cited. However, its returns reflect a specialized long-short investment strategy and should not be interpreted as a direct indication of future gold-price performance.