Education
4:09 pm
Mon April 18, 2011

Golden 'Horns

Some investors believe that buying gold is a good hedge against inflation.  If that's the case, then the University of Texas Investment Management Company (UTIMCO) may be protected for some time.

Bloomberg.com reports that a Dallas-based hedge-fund manager helped UTIMCO buy over 6,600 gold bars last week.  In case you're curious, gold bullion futures closed today at $1,489.70 per ounce.

From the Bloomberg story:

"Dallas hedge-fund manager J. Kyle Bass helped advise the University of Texas Investment Management Co. on taking delivery of 6,643 gold bars, worth $987 million on April 15, now stored in a bank warehouse in New York.

"Bass, who made $500 million with 2006 bets on a U.S. subprime-mortgage market collapse, said managers of the endowment, known as UTIMCO, sought board approval to convert its gold investments into bullion this year. A board member, Bass, 41, said he was asked to help with that process."