The fund, managed by Tom Winnifrith, has dumped Medusa Mining from its portfolio, and has piled extra resources into Chaarat Gold Holdings and nickel producer Minara Resources instead.
"We bought into Medusa at an average of 40p per share, and sold out at £4," Winnifrith said.
"We thought the valuation was almost full, and we also re-evaluated our risk profile on the Philippines, where the company is based, which made the stock less valuable on a risk/reward basis," he added.
Performance of funds over 1-yr
Source: Financial Express Analytics
Financial Express data shows the SF t1ps Smaller Companies Gold fund has outperformed its rivals since launch over a year ago, including Ruffer Baker Steel Gold and BlackRock Gold & General.
In fact, not only has Winnifrith's fund steamed ahead of its rivals by returning 127 per cent to investors, it is the best performing unit trust over the past year. The fund has a total expense ratio (TER) of 2.69 per cent.
"We expect to do even better in 2011. If gold stays where it is we will outperform due to the value of the assets we hold. But we expect the price of gold to go up, so our performance will get an extra boost. No other commodity will perform as well as gold and silver in the coming years," he added.
In a recent interview with Trustnet, Winnifrith said he expected the run on gold to continue indefinitely, as developed countries seek to weaken their currencies.
He said: "Our fundamental view is that gold will go markedly higher. The competitive debasement of paper currencies throughout the world will continue to push prices up.
"Realistically, we expect prices to hit $1,700 per troy ounce next year, and up to and beyond $2,000 in 2012. But if one of a number of 'Black Swan' events occurs in the next few months, for example a war in Korea or Iran, this increase will be even quicker."