The EMA GARP Fund, managed by Equity Management Associates, recently released its second-quarter investor letter for 2026. The letter can be downloaded here. The letter emphasizes that capital expenditures in artificial intelligence (AI) are driving growth and earnings, despite extreme valuations in the U.S. market, which resemble a bubble-like situation. It also discusses the impact of passive ETF flows, fiscal deficits, and inflationary policies. For the quarter, the Fund’s value decreased by 20.00%, and it is down 21.96% for the first half of the year, even though AI and related growth stocks were prominent during Q2. Additionally, the firm identified precious metals miners as a potentially strong investment, noting that they are significantly undervalued and present substantial asymmetrical opportunities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, the EMA GARP Fund highlighted Aris Mining Corporation (NYSE:ARIS). Aris Mining Corporation (NYSE:ARIS) is a Canadian gold miner that engages in the acquisition, exploration, development, and operation of gold properties. On July 27, 2026, Aris Mining Corporation (NYSE:ARIS) closed at $14.86 per share, reflecting a market capitalization of $3.06 billion. Aris Mining Corporation (NYSE:ARIS) posted a one-month return of -0.34%, while its shares gained 106.68% over the past 52 weeks.
The EMA GARP Fund stated the following regarding Aris Mining Corporation (NYSE:ARIS) in its Q2 2026 investor update:
“The miners are way, way too cheap at present gold and silver prices. And their earnings outlook is robust at higher bullion prices given the substantial operating leverage. Miner industry profitability is as good as it’s been at any point in the last 25 years. Two Miner Case Studies are outlined – Aris Mining Corporation (NYSE:ARIS) and Avino. Crazy cheap and massive asymmetry.
Aris is an emerging mid-tier producer with two operating mines in Colombia (Marmato and Segovia) and two large development projects, one in Colombia and one in Guyana. In 2025, they produced 257,000 ounces of gold. Their average selling cost was $3,526/ounce and their average mining cost (AISC) was $1,705/ounce. So, their gross mine profit was $467 million. In 2026, they have guided production between 300,000 and 350,000 ounces at similar costs. The mid-point of guidance equals a 26% growth in ounces produced. They have plans to increase the production in the existing mines after 2026 and their target is to become a 1 million ounce producer within 5 years. In the Q1 2026, they generated EBITDA of $212 million (a run rate of $800 million per year which is the same as the Bloomberg consensus estimates). So, the Company is trading at only 3.75x EBITDA. This compares favorably to the average EBITDA multiple of the S&P 500 which is currently 17x and even more so compared to the MAG-7 stocks which trade at an average multiple of 28x…” (Click here to read the full text)
Aris Mining Corporation (NYSE:ARIS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 24 hedge fund portfolios held Aris Mining Corporation (NYSE:ARIS) at the end of the first quarter, compared to 28 in the previous quarter. While we acknowledge the risk and potential of Aris Mining Corporation (NYSE:ARIS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Aris Mining Corporation (NYSE:ARIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Aris Mining Corporation (NYSE:ARIS) and shared the list of best Canadian gold stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
