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Seth Klarman Buys Miners

scott
edited August 2013 in Off-Topic
Wednesday, Aug 14
11:39 AM
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.

http://seekingalpha.com/currents/post/1221772

Klarman 13f:http://www.sec.gov/Archives/edgar/data/1061768/000114036113032160/xslForm13F_X01/form13fInfoTable.xml

Comments

  • Kenster1_GlobalValue
    Recent Q&A with David Herro/Oakmark in Barron's:

    Q: You are also the largest outside owner of Orica (ORI.Australia), the Australian mining company.

    [Herro] Mining has been soft over the last year or so, and Orica's been hit quite hard. But Orica makes explosive materials, so it doesn't matter whether mines are necessarily expanding, it just matters that they are producing. Coal and iron ore need explosive material to move ore bodies, and Orica is the world leader. The industry has high barriers to entry. These things are very difficult to make, very difficult to get licenses for, very difficult to ship and it's a necessary part of the mining sector. It's a timely profitable business that is not booming and the share price is down significantly, so we think this is a good, safe way to play exposure over the medium and long term to mining services.

  • VintageFreakVintageFreak
    Want to caution people, must because people buying certain miners does not mean all miners will do well. Even during tech and financial busts, certain stocks in that sector did well.

    Besides these recommendations if taken seriously mean we have to buy individual stocks and not the funds of managers recommending is those stocks. Just saying...

    Finally, what is Klarman's claim to fame? Never heard of him.
  • Kenster1_GlobalValue
    edited August 2013
    Reply to @VintageFreak:

    See this for a synopsis on Seth Klarman:

    http://www.nasdaq.com/article/how-to-invest-like-seth-klarman-cm267297

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