Putting His Mouth Where His Money Is: Meet Dylan Grice's New Home

Tyler Durden's picture

It is no secret that one of Zero Hedge's favorite mainstream strategists over the years was SocGen's Dylan Grice, which perhaps in itself was a logical warning sign that his career in the mainstream was doomed to a premature end. Sure enough, several months ago, Grice, whose guiding motto has been sound money uber alles as he dutifully exposed - as much as he could  - crack after crack in the facade of the status quo, announced he was leaving SocGen, and was headed for greener pastures, literally, in this case Zurich-based fund Edelweiss, run by Anthony Deden. And while lateral moves in the financial industry are nothing new, we were quite impressed to learn that unlike most other "capital preservation" managers, Dylan Grice's new home has a rather stunning allocation of AUM to precious metals. How stunning? Decide for yourselves.

That's right: 60% of Edelweiss' capital is allocated to PMs, as over the past 7 years, more and more cash was allocated to gold, silver and the like. This is orders of magnitude more invested in real assets than most other "wealth preservation" funds will allocate to the sector.

Naturally, the performance of the fund has tracked that of the precious metal sector, and has as expected, outperformed the vast majority of its competitors in the past decade.

Here is how Grice's new employer describes itself:

Founded in 2001, Edelweiss Holdings is an open-end investment company focusing on the preservation of wealth against the erosion of the purchasing power of money.


As stewards of capital, we seek to provide durable refuge in an uncertain world. We reject the hollow output of an unprincipled financial system, preferring instead the timeless substance of honest entrepreneurship.


As responsible owners, we value independence, scarcity and permanence both as to our thinking and also as to the aggregate nature of our investment collection.


Our practice is intellectually honest, conservative, disciplined, respectful of capital and entirely free from conflicts of interest. Edelweiss Holdings employs its own investment team reporting to a board of independent directors.

And the refreshing introduction letter from its founder:

Understanding what we do at Edelweiss Holdings requires an understanding of why we do it—and the ideas behind why we do it. Above all else, it requires an appreciation of what we call the sanctity of savings. This idea imparts a deep respect for honest capital and for the knowledge and wisdom embedded in that capital.


Saving involves sacrifice. Sacrifice requires fortitude. Fortitude should be rewarded over time by an accumulation of capital, granting the saver more options and freedom than he or she otherwise would have had. There is unlikely to be a second chance to re-accumulate a lifetime’s savings. When it’s gone, it’s gone. That capital is precious to the saver.


But that capital is precious to the wider community, too. In a free society, the most profitable activity is likely to be that which satisfies the greatest desire. Since savers provide the capital which makes that activity possible, they make the satisfaction of society’s desires possible too. And capital grows cumulatively, today’s capital stock laying the foundations upon which tomorrow’s prosperity is built. The better the allocation of scarce capital to its most productive use today, the more solid those foundations. Whether people realize it or not, the decisions we make with the capital and savings of today’s generation are our bequeathment to tomorrow’s. We are consequently motivated by a conviction that the wise stewardship of honest capital is a fundamentally noble endeavor and view the responsibility of managing savings as much a burden as it is a privilege.


Capital is scarce. It is valuable. And so it is vulnerable. It is vulnerable to confiscation explicit and implicit, to competitive erosion and to bad ideas. The protection of honest capital thus requires honest thought: about the world, its dangers and opportunities, about our investments, about the nature of risk. Above all it requires honest thinking about ourselves, our capabilities and our limitations.


Some might liken our approach to “value investing.” But we’re not sure what “value investing” is. The cheapest stocks are often some combination of bad businesses and poor management. Others might see us as “contrarian.” But we don’t know what “contrarian” means either. It is contrarian to cross the road with one’s eyes closed, yet we prefer to cross with our eyes open. So we are quite consensus sometimes. We currently own a relatively large holding of gold in our vaults. In the past we have had similarly large concentrations in government bonds, or in oil royalties and other types of assets. So, some might think we practice “macro investing.” But we don’t know what “macro investing” is either. Do macro investors try to predict the future and make their bets accordingly? We don’t. Our crystal ball is as foggy as the next man’s.


We are none of these things. We are independent. We see ourselves as honest entrepreneurs in search of honest entrepreneurs, patient in action and careful in thought. We are not traders. We are owners. And the ownership of productive resources run by honorable and able people is the best way we know of protecting the scarce savings of our shareholders.

It looks like Dylan has found a perfect place to call home. We look forward to presenting his periodic musings to an audience that certainly shares his employer's views regarding resource allocation and certainly capital formation.

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GetZeeGold's picture



CNBC is not going to be amused about this......but they'll probably bitch about it in private and not even bring it up.


Whatever you do don't tell Chuck Munger......he will be livid.

Caged Monkey's picture

60% PMs? Why, you can't eat PMs!

Stocks and bonds is where it's at, baby. They taste great... 


retiringteach's picture

write about them while you can-with 60% in pm they'll be out of business soon

Eumaeus's picture

Where, pray tell, is the operational risk in holding physical bullion?

Thomas's picture

The heinous crimes committed by the Federal Reserve are summarized, quite simply, as an effort to render our hard earned and methodically saved capital completely worthless--of no value to those who consume capital for potentially productive enterprise. Now the idiots can borrow at no cost. The authorities are then shocked when the capital is used for marginal enterprises that become anything but marginal losses when the tide changes direction.

I am now fully in the camp that believes the Federal Reserve, other central banks, and the global banking cartel collectively are the evil empire. The silver lining of a global collapse would be the destruction of those institutions. That is also why I am 60% precious metals with approximately one third of that physical and the rest in the best ideas available within the constraints of the system. 

Pegasus Muse's picture

Well said, although I think 60% - 80% in physical metals with the rest in fiat, equities, etc is a more prudent mix given the current macro risks.

lynnybee's picture

' CNBC is not going to be amused about this ' , I don't give a g.d.rats ass about that awful t.v. channel !  i hope they go under with the rest of them.   i was one of those sheeple who lost a bundle in the NASADAQ bubble.. looking back i just shake my head at the utter fool i was (me and the rest of the idiots who listened to people on television.)    instead of listening to my Grandma Jo, i listened to a gdamn television !   there is no television in my home anymore, it's gone (along with the outrageous monthly bill) .   My Grandma Jo (born 1915, god rest her soul, always told us kids, 'do not go into the stock market & never trust the government.)  CNBC is the propoganda of scammer & criminals.  

tango's picture

I don't understand the hatred toward CNBC.  Any TV program has to entertain as well as inform or it's off theair. If people actually listen to the show instead of constantly bitching, they'd hear frequent ZH-type opinions - runaway debt, housing mess, PM, deficit, GOP pussies, market rise due to FED actions, no budget, etc.

The Tylers certainly closer follow mainstream business outlets and analysis.  They do what normal folks do - emphasize views, research and charts they like and diss those they don't.  I like CNBC - I ignore the cheerleading and concentrate on data.  I cheer Santelli, Caruso-Cabrera (strong libertarian), Kudlow (uh o h -he once had a kind word for the FED),  Maria Bartiromo who has fought with numerous democrats over budget and spending.....  It's not all cheering and pumping. Like most things, you get out of it what you put in. 

Everybodys All American's picture

The CNBC media are dead center on the floor of the NYSE exchange and it's all about the pump. Do you find that at all odd. The actors are the media of CNBC and you are the target.

It's kind of like when you sit down at a poker table. There is always one fool sitting at the table and the game is to spot that person early on. If you can't spot that person then it's likely that you are the fool who's money will be taken.

I am a Man I am Forty's picture

switzerland treats us citizens lke lepers these days because they were too pussy to stand up to us gov, thank ubs and credit suisse for that.

GMadScientist's picture

Some US citizens had already purchased the pussies in congress with money they laundered and pressed there, you can thank UBS and Credit Suisse for that too.

GubbermintWorker's picture

Yabut, if you don't hold it you don't own it.

GMadScientist's picture

That explains why you've always got your hand on that, but I assure you that no one will try to take it from you.

Cognitive Dissonance's picture

"Above all else, it requires an appreciation of what we call the sanctity of savings. This idea imparts a deep respect for honest capital and for the knowledge and wisdom embedded in that capital."

What a refreshing concept. I suspect that in a world of easily created fiat (would you like one trillion chits or two?) a lot of people would scratch their heads over the term "honest capital".

Notarocketscientist's picture

Unfortunately there is no such thing - any longer.


TheEmperor's picture

Edelweiss, Edelweiss
Every morning you greet me
Shiny and non-hypothocated, clean and bright
You look happy to meet me
Blossom of snow may you bloom and grow
Bloom and grow forever
Bless my homeland forever.

mayhem_korner's picture



"...we seek to provide durable refuge in an uncertain world" 

Outstanding description.  Edelweiss = the Noah's Ark of funds.

fonzannoon's picture

does he own precious metals or an etf?

Just Ice's picture

 Sounded like the former:  "We currently own a relatively large holding of gold in our vaults." 

nevadan's picture

 We currently own a relatively large holding of gold in our vaults.

Notarocketscientist's picture

I sometimes go down to the bank where I keep gold in safe boxes and lock myself in the private room, fondle the coins and jerk off.

lasvegaspersona's picture


if one is LARGE in investment $, one can get physical (at least in theory). Minimum for GLD is 100,000 shares ($16,875,000) as of now.

Whether or not your Authorized Participant will perform in a crisis is another question.

Holding 'gold' in an ETF is a hedge, holding physical in your hand is security in the case of a major dollar crisis......but that can't happen ask anyone who knows about the Magic Momey Tree (MMT).

new game's picture

stored in their vaults...

Dr. Engali's picture

I prefer to own it in my vault... otherwise I don't own it..... they do.

GMadScientist's picture

...and they do...and they do too!

Never One Roach's picture

Seems like a 'no-brainer' to have at least a portion of your fund, investment, savings, etc. in PMs when you see Central Banks grabbing all they can get and many retirement funds (such as the $4 Billion by Uni of Texas) adding it to their portfolios. As one investment fund manager said recently, "Gold never goes to zero."

As the article states, it is a "wealth preservation" investment. As far as the "you can't eat it" propaganda...try eating 0.01% yield on your savings account.

GMadScientist's picture

Why should I shed tears for people too lazy to do their own fucking loansharking?

SheepDog-One's picture

'MLK', whatever. What's he best remembered for today, ObamaPhone?

nmewn's picture

Even the useful idiot ObamaFawn Lady is now calling him a liar...well thanks for the sour persimmons sister.

new game's picture

nice to read about a sustainable plan based on values lost to more rational humans.

seems as though we are running ever faster to the edge of the cliff, whether it be farming/oil,

ecology of the earth, laws of respect-virtues or virtueless, and plain and simple- a fucking plan that involves more than screwing

 whomever for the day...

the great purge comes forward another day

GMadScientist's picture

I guarantee the electroplating will end your stiffy, but have a go...the capacitors are at full charge.

bobert727's picture

You always hear...."Don't fade the Fed"

Well ok....then why is everyone buying equities and calling the bond market a "bubble"?

The Fed is buying bonds.....if you don't want to fade the Fed....shouldn't market players be buying bonds and not equities?

Do you think the Fed is going to let rates rise and show a huge loss on their balance sheet?

When equities collapse (everyone is long at this point), the FED will look smart and have profits in their positions as rates slide even further.

Yep....don't fade the Fed....buy what they are buying!!!





Everybodys All American's picture

We are so far away from historical guides that the analysis of days gone by are of little use. The Fed is the market until it's not and when that becomes the reality there will be no safety from the collapse.

Safe Haven's picture

Brokers that no longer have a shelf life ( or increasingly limited time line) naturally move from the lower margin IB industry ( in this case, to a has been brokerage/investment banking outfit) to an longer shelf life ( ?? For HOW long) fund management 2-20% business model; much like the GMO copy paste Albert Edwards example. The incentives for a stable +200'000 base salary ex everything else are significantly greater than, producing intellectually fascinating stories about what goes up or what should go down for a directionally down hill employer such as the mass exodus we see from THESE SO CALLED Global Strtagist writers.

Catflappo's picture

I like the inclusion of Ethopian Birr as a measurement currency - just to show how arbitrarily one can present different returns.

And with that, I am relocating my portfolio management business to Addis Abbaba....