Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

Yesterday, Standard & Poor’s downgraded the long-term outlook of U.S. debt from stable to negative. European Central Bank is expected to increase interest rates even though Southern European countries are struggling. There are doubts about United States’ credit rating and the US dollar is declining. Fed’s loose monetary policy is supporting inflation expectations. Several prominent hedge fund managers like Jim Rogers, Julian Robertson, and Ray Dalio expressed their concerns about the US dollar. As a result, investors and hedge funds are flocking into gold, oil, metals and other hard assets that can retain their value in an inflationary environment. The demand from high growing emerging market countries also put a floor under these commodities.

Finally today gold futures crossed the $1500 level. We are also bullish about the gold and believe than investors should consider hedging inflation risks by gaining some exposure to gold. Hedge funds follow various strategies to benefit from increase in gold prices. Hedge fund managers such as David Einhorn bought physical gold. George Soros, Dan Loeb and Stephen Mandel prefer Gold ETF (NYSEARCA:GLD). John Griffin, Roberto Mignone, Brevan Howard, and Curtis Schenker like Gold Miners ETF (NYSEARCA:GDX). Other hedge fund managers invested directly in gold mining stocks.

Insider Monkey, your source for free insider trading data, summarized hedge fund holdings in top gold miners. We follow 175 hedge funds. Here are the top gold producers that hedge funds have and prominent investors invested in at the end of 2010:

Company

Ticker

Holdings (x1000)

No. of Funds

AngloGold Ashanti Ltd

AU

2,028,209

6

Kinross Gold Corp

KGC

494,047

10

Gold Fields Ltd

GFI

486,190

5

PAN American Silver Corp

PAAS

443,951

9

Newmont Mining Corp

NEM

346,226

20

Agnico-Eagle Mines Ltd

AEM

304,567

8

Barrick Gold Corp

ABX

302,704

19

Silver Standard Resources Inc

SSRI

289,710

3

Allied Nevada Gold Corp

ANV

194,739

6

Seabridge Gold Inc

SA

181,567

2

Goldcorp Inc

GG

165,037

12

Silver Wheaton Corp

SLW

130,471

7

IAMGOLD Corp

IAG

127,572

9

Gammon Gold Inc

GRS

118,762

4

Randgold Resources Ltd

GOLD

110,820

5

Yamana Gold Inc

AUY

93,641

10

Hecla Mining Co

HL

88,462

7

Great Basin Gold Ltd

GBG

69,395

6

Eldorado Gold Corp

EGO

61,815

4

New Gold Inc

NGD

52,595

5

Northgate Minerals Corp

NXG

42,293

4

Aurizon Mines Ltd

AZK

29,414

3

Royal Gold Inc

RGLD

24,529

4

Cia de Minas Buenaventura SA

BVN

24,045

5

Minefinders Corp

MFN

23,498

3

Tanzanian Royalty Exploration Corp

TRE

21,508

1

Nevsun Resources Ltd

NSU

13,498

2

Golden Star Resources Ltd

GSS

7,986

3

Harmony Gold Mining Co Ltd

HMY

648

1

Gold Resource Corp

GORO

308

1

John Paulson is the most bullish hedge fund manager about gold since 2009. One of his largest investments in gold is AngloGold Ashanti. He has more than $2 billion invested in AU. Kinross Gold Corp ranks second with 10 hedge funds owning nearly $500 million in KGC at the end of December. John Paulson, George Soros, and Libra Advisors’ Ranjan Tandon are among the hedge funds with KGC positions.

Newmont Mining is the most popular gold miner in terms of the number of hedge funds invested in. There were 20 hedge funds with NEM holdings. Barrick Gold (NYSE:ABX) ranked second with 19 different prominent institutional investors. Eric Mindich’s Eton Park had large positions in both stocks. Jim Simons’ Renaissance preferred NEM, whereas Richard Chilton was the largest investor in ABX.

We believe gold miners provide a leveraged exposure to gold. These stocks should perform better than gold bullion if prices keep rising. On the other hand they perform worse than gold bullion in bear markets.

Source: Top Gold Miners That Hedge Funds Love