Gold Fields Limited (ADR) (NYSE:GFI) shares are 2% in the red in afternoon trading because gold spot prices have continued to decline as more and more investors expect the Federal Reserve to raise interest rates during the next FOMC meeting next month. If the Fed raises rates, gold will not be as attractive of an asset and the potential for future hyper-inflation will be lower. Nevertheless, gold bulls feel that there could yet be substantial upside in the commodity if global conditions continue to deteriorate, although cryptocurrencies like Bitcoin are also starting to eat into gold’s domain of being a safe haven for investors outside of cash and stocks.
Is Gold Fields Limited (ADR) (NYSE:GFI) a cheap investment right now? Prominent investors are taking an optimistic view. Heading into the second quarter of 2016, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 31% rise from one quarter earlier. At the end of this article we will also compare GFI to other stocks including Texas Roadhouse Inc (NASDAQ:TXRH), Dillard’s, Inc. (NYSE:DDS), and Nabors Industries Ltd. (NYSE:NBR) to get a better sense of its popularity.
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Of the funds tracked by Insider Monkey, Orbis Investment Management, managed by William B. Gray, holds the biggest position in Gold Fields Limited (ADR) (NYSE:GFI). Orbis Investment Management has a $245.9 million position in the stock, comprising 1.6% of its 13F portfolio. On Orbis Investment Management’s heels is Renaissance Technologies, managed by Jim Simons, which holds a $48.3 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish encompass Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Robert Polak’s Anchor Bolt Capital, and Cliff Asness’ AQR Capital Management.
On the next page we’ll look at some funds that took up positions in Gold Fields during Q1, as well as compare the stock to a handful of others with similar market caps.