How Are Hedge Funds Playing Gold and Miners?
Jeffrey Gundlach’s views
Jeffrey Gundlach, billionaire investor and DoubleLine Capital CEO and chief investment officer, shared his views on the current market environment at the 2017 Sohn Investment Conference on May 8, 2017. He advised investors to go short on US stocks (SPY) (SPX) and long on emerging markets (EEM). As for gold prices (GLD) (GDX), he believes they could face “another leg up.”
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Stanley Druckenmiller’s position in gold
Billionaire investor and Duquesne Family Office chair and CEO Stanley Druckenmiller is the former deputy of legendary investor George Soros. He is bearish on stocks and bullish on gold. He believes that the bull market has “exhausted itself.” While he sold all of his gold on the night of the US presidential election, he bought some in December and January. He bought 2.9 million shares in Barrick Gold (ABX), according to regulatory filings for the quarter ended March 31, 2017. As reported by Bloomberg, Templeton Global Advisors also added to its position in Barrick, tripling its stake to 18.2 million shares in 1Q17.
Other hedge funds’ positions in gold
Billionaire hedge fund manager John Paulson maintained his position in the SPDR Gold Shares ETF (GLD) in 1Q17 even as precious metal prices rebounded. As reported by Bloomberg, Paulson owned 4.4 million GLD shares at the end of March. Hedge funds’ interest in gold could help the sector overall, boosting miners such as AngloGold Ashanti (AU), Goldcorp (GG), and Newmont Mining (NEM).