Hugo Chavez. Among his many talents, we should not fail to count hedge fund manager. Starting several years ago, Hugo put “over 70 percent” of Venezuela’s foreign exchange reserves into gold and turned a 400% profit!
Since his death, this portfolio has remained gold-heavy and lost around 25%. It is claimed that Venezuela is in trouble as a result.
But, clearly a 25% loss after a 400% gain still leaves you better off than when you started doesn’t it?
Well, Hugo didn’t leave his profits in the reserve portfolio:
“The rally in the metal had enabled Chavez, who died of cancer in March, to siphon off $45.8 billion from the central bank to an off-budget development fund.”
In this, as in so many other aspects of Venezuela, Hugo’s hapless successor, (no tan) Maduro has been left holding the (emptying) bag.