Tulloch and Asante boost stakes in resources after gold price slump

First State Investments' Angus Tulloch and Jonathan Asante have both been adding to resources stocks in recent weeks across their GEM portfolios, following the sharp pullback in the gold spot price and the valuations of a number of miners.

Tulloch (pictured) has been buying into Australian gold producer Newcrest in his £7.4bn First State Asia Pacific Leaders fund, upping his stake to 3.5%, as an insurance policy against the prospect of further bouts of quantitative easing. The emerging markets veteran said although he cannot call the future direction of the gold price, the asset class is likely to become popular after its recent slump, which included a one-day fall of 9% in April. "There is the potential for China to convert its heavy US dollar exposure into gold, which would provide a positive catalyst for the spot pri...