Waratah Capital Advisors is increasingly turning to gold as a key driver of returns in 2025, as global investors seek safe-haven assets amid growing uncertainty over the US dollar’s stability, according to a report by Bloomberg.
In a letter to investors, co-founder Brad Dunkley noted that “we now live in a world that is losing faith in the US dollar,” citing central banks and individuals, particularly in emerging markets such as India and China, who are turning to gold to protect their purchasing power. Dunkley emphasised that gold is expected to play a pivotal role in the firm’s performance this year.
Despite this positive outlook on gold, Waratah’s two flagship funds, Waratah One and Waratah One X, experienced losses in the first quarter, down 3.3% and 5%, respectively. However, the firm’s long-biased fund returned around 2%, while its thematic fund gained 4.5%.
Founded in 2010 by Dunkley and Blair Levinsky, Waratah manages approximately CAD3.8bn ($2.8bn) for a diverse range of clients, including wealthy individuals, family offices, foundations, and pension funds. Dunkley’s long-biased fund, Waratah Special Opportunities, has delivered average annual returns of over 11%.
Gold has emerged as a prominent asset this year, with prices hitting a record high of $3,500 per ounce amid growing skepticism about the US dollar. The precious metal has surged more than 45% over the past year, driven by concerns about President Trump’s trade policies and economic shifts.
Waratah also expects other commodities like copper, natural gas, and electricity to continue rising, particularly as artificial intelligence (AI) adoption accelerates. However, Dunkley expressed reservations about AI’s long-term business potential, citing excessive competition and a lack of meaningful differentiation among companies in the space. He likened the current wave of AI investment to the rollout of high-speed fibre optics, where capital expenditures are unlikely to benefit investors as much as consumers and businesses.
In terms of equities, Waratah has increased its exposure to Canadian stocks, particularly engineering and construction companies, in anticipation of higher infrastructure spending following the April 28 election. The firm believes that Prime Minister Mark Carney’s promise of increased infrastructure investment will be a response to tariff threats. Waratah also holds a position in Nexgen Energy Ltd, a Canadian uranium company with significant assets in Saskatchewan. The company is awaiting final federal permits, which Waratah expects may be expedited after the election.
