Toronto-based hedge fund Waratah Capital Advisors is ramping up its exposure to gold equities as bullion hits record highs, viewing the rally as just beginning investing in mid-tier producers as well as early-stage developers, according to a report by Bloomberg.

Co-founded by Brad Dunkley and Blair Levinsky in 2010, Waratah’s Special Opportunities Fund, with CAD88m in assets, has returned nearly 29% in the first eight months of 2025, while the CAD817m Waratah Performance Fund rose 12% over the same period. Dunkley cited strong margins, rising cash flows, and potential M&A activity in the gold sector as key drivers for the strategy.

The hedge fund is also targeting Canadian precious metals and critical mineral firms with high-margin, long-life projects, including Goliath Resources Ltd. Waratah sees jurisdictional stability and growth prospects in Canada as major factors for deploying capital. In addition to gold, the firm is selectively investing in copper, favouring Hudbay Minerals Inc. for its readiness to capitalise on US domestic production incentives.

Dunkley described gold equities as “compelling investments,” comparing the cash-generating power of mid-tier miners to high-margin technology companies, while the firm also hunts for potential takeover targets to enhance returns.