See In the News (C-ABX) Barrick Gold Corp |
The Globe and Mail reports in its Saturday edition that Barrick's share price has lagged gold's big rise of the past few words -- a malady made all the worse by last week's 9-per-cent thumping. The Globe's David Berman writes, however, that lag is neither new nor confined to Barrick. Large-cap gold producers have been struggling next to gold for some time, at least in relative terms. The numbers are compelling when you compare gold with the performance of the NYSE Arca Gold Bugs index, a 16-member index that consists of international biggies such as Barrick, Goldcorp, Newmont and AngloGold. Over the past five years, the index has risen 60 per cent, after factoring in dividends. Gold's return is more than double that, at 135 per cent. For all the hoopla surrounding gold's rise above $1,500 an ounce in 2011, gold stocks have done little more than tread water this year. For equity investors, this is a disappointing trend. Producers are supposed to be a leveraged bet on the commodities they produce. Still, says Mr. Berman, if you missed out on gold's extraordinary run-up, large-cap gold producers are likely the best way to play gold right now. He figures producers have a lot of catching up to do. |
Globe says bets on Eldorado, others pays off for Taylor
2011-04-25 06:02 ET - In the News
See In the News (C-ELD) Eldorado Gold Corp
The Globe and Mail reports in its Monday, April 25, edition that Goodman & Co. Investment Counsel manager David Taylor runs Dynamic Canadian Value Class and Dynamic Value Fund of Canada, which posted over five years annualized returns of 7.7 per cent and 7.5 per cent. The
Globe's Darcy Keith writes in the Number Cruncher column that Mr. Taylor attributes his success to his use of cash, big sector bets and being contrarian by buying cheap stocks with potential catalysts. Mr. Taylor says, "If you want to be No. 1, you can't build a portfolio that looks like everybody else." In late 2008 Mr. Taylor had boosted cash to 20 per cent, which he put to work in March, 2009. Mr. Taylor's best move came when he slashed his energy weighting that year to 11 per cent versus 30 per cent for the index. It was a contrarian move. He invested in "very cheap" gold stocks when that metal was trading around $500 an ounce compared with $1,500 today.
He bought names such as Osisko Mining, Eldorado Gold, Tahoe Resources and also Andean Resources, which has been taken over by Goldcorp. Mr. Taylor says, "I bought gold and silver stocks when everybody was madly in love with and only cared about oil."
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