Seeking Alpha

Klarman buys up precious metals miners

  • New Baupost positions added in Q2 include a 3.255M share stake in Yamana Gold (AUY +4.1%), 2.1M shares of Kinross Gold (KGC +6.1%), and 155.7K shares of Pretium Resources (PVG +3.8%).
  • Source: 13F, previous 13F.
  • GDX +4.9%, SIL +3.5%.
  • Baupost's 13F discloses holdings of just $4B vs. total AUM of $26B, so there may be more going on, notes ValueWalk's Tabinda Hussain.
  • Other PM mining ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, SLVP, SILJ.
Comments (6)
  • Philip Marlowe
    , contributor
    Comments (1047) | Send Message
     
    Other Baupost buys -- MU, IMOS.
    14 Aug 2013, 11:41 AM Reply Like
  • Chris Lau
    , contributor
    Comments (1872) | Send Message
     
    He sold out of (MSFT), (NWS), and added to (THRX) which I called a buy in the 20's. Why buy more at 35+?
    14 Aug 2013, 12:29 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1758) | Send Message
     
    I spoke to Vitaliy Kaytsenelson in depth a few weeks ago about how undervalued royalty/streaming gold and silver companies were along with some miners and how I thought they were putting in a permanent secular bottom due to supply/demand fundamentals for metal and how spot prices were way below production cost. I believe he is very good friends with Seth Klarman. One of Vitaliy's favorite value investing books is Klarman's Margin of Safety, which is out of print. Maybe Vitaliy talked about what I told him at length to Klarman?
    14 Aug 2013, 12:50 PM Reply Like
  • minecanary
    , contributor
    Comments (464) | Send Message
     
    Now where are the wizards from this sight who were predicting a lot of mining companies would be going under just 2 short weeks ago? What I really can't wait for is when Bennie explains to Congress that he leased all our gold to GS and JPM to avoid looking silly for printing so much mula...
    14 Aug 2013, 12:58 PM Reply Like
  • Dr. Cash Flow
    , contributor
    Comments (10) | Send Message
     
    minecanary, there will be a lot of junior explorers going out of business within 12 months as many have virtually no cash left and are seriously cash flow negative despite already having reduced discretionary exploration expenses. some may get new funds, but the share dilution will be off the charts
    15 Aug 2013, 12:00 PM Reply Like
  • minecanary
    , contributor
    Comments (464) | Send Message
     
    I think if the metals surge a few more bucks, people will be back to throwing money at the miners. Some may go under but any with proven reserves will get bought at a premium.
    15 Aug 2013, 09:40 PM Reply Like
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