Digging Deeper for Gold Plays
As I read though the latest round of 13F filings, a few things became clear to me. First, a lot of folks are paying money for what are basically market index clone portfolios. Many of the leading money managers look exactly like one other, and they all resemble the S&P 500. I have never understood running index-type portfolios and just tweaking the weightings. If you love tech and hate autos, then buy tech and sell autos, don't under and overweight the allocation. The amount of money being managed in this fashion is staggering. But I guess I should be grateful, as it creates opportunities for a value guy like me.
The other thing I noticed is that many very smart people like gold and gold-mining stocks at this level. Fund managers John Paulson and David Einhorn have led the charge on gold for a couple of years with very mixed results, but other value types are getting involved. Deep value types like Michael Price, Seth Klarman and Donald Smith are starting to include companies whose main business is digging for the shiny metal. There could not be two more different investors than Julian Robertson and John Hussman, but both are buying gold miners this year. This captures my attention and has me taking a deeper look at the sector....504 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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