5 War Stocks to Buy Now According to Hedge Funds

In this article, we discuss 5 war stocks to buy now according to hedge funds. If you want to read our detailed analysis of these stocks, go directly to 10 War Stocks to Buy Now According to Hedge Funds.

5. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 46    

Barrick Gold Corporation (NYSE:GOLD) is a resource firm with prime interests in gold and copper. The hedge fund sentiment around the stock is positive. At the end of the fourth quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $958 million in Barrick Gold Corporation (NYSE:GOLD), compared to 41 the preceding quarter worth $917 million.

Interest in inflation hedges like gold was already benefiting Barrick Gold Corporation (NYSE:GOLD), but the war in Ukraine has helped push prices higher as more people across the world buy gold to safeguard against the developing economic situation in the US and Europe due to disruption of Russian exports.  

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:

“Barrick’s recent results have been consistent with our expectations. Barrick Gold Corporation (NYSE:GOLD) has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick Gold Corporation (NYSE:GOLD) of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”