Renaissance Technologies Increases Its Stake in Coeur Mining

Renaissance Technologies increases its stake in Coeur Mining

In 1Q15, around 23 hedge funds created a new position in Coeur Mining (CDE). Over 52 hedge funds added to their position in Coeur Mining—including Renaissance Technologies. The performance of silver mining stocks is impacted by the fluctuation in silver and gold prices. Stocks that are generally impacted by this fluctuation in prices are Newmont Mining (NEM), Hecla Mining (HL), and Pan American Silver (PAAS). These stocks account for 9.92% of the VanEck Vectors Gold Miners ETF (GDX).

Renaissance Technologies Increases Its Stake in Coeur Mining

Coeur Mining’s AISC (all-in sustaining cost) is benefiting from favorable foreign exchange movements. The Mexican peso depreciation and the fall in crude oil prices led to an improvement in its cost structure. Gold and silver prices are inversely related to the interest rate hike. If the Fed increases its rate in the next quarter, it will create a headwind for Coeur Mining because gold and silver prices will fall.

Hedge funds holding

It’s noted from aggregated 13F data, among the funds that added Coeur Mining to their portfolio in 1Q15 in terms of dollar value invested, Renaissance Technologies was ranked 11th. Van Eck Associates, Donald Smith & Company, Vanguard Group, and State Street occupied the first four slots, respectively.

In this series, we’ll take a look at Coeur Mining’s performance over the last quarter in order to better understand its current and longer-term drivers. We’ll also examine how the payoff has been on this position YTD (year-to-date). We’ll benchmark the stock’s performance against other modes of gaining exposure in the gold and silver mining sector.