The UK’s decision to part ways with the EU catapulted gold prices above $1,300 per ounce on Friday, the highest level since March 2014. Investors always flock to Gold, a precious safe-haven asset, in times of political and financial uncertainty. The plunging sterling following Brexit vote is making gold even more expensive in terms of pounds. Gold prices had hit a two-week low of $1,251.16 an ounce on Thursday after pre-vote polling suggested that the UK would opt to remain in the EU. But the surprising results have turned the tables, resulting in a chaotic market sentiment, favoring gold. According to Julian Jessop, head of commodities research at Capital Economics, apart from the Brexit, Gold is surging due to a “growing appetite” for inflation hedges and increasing demand from the emerging markets.
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Gold prices gained as much as 8.2% to hit $1,358.2 an ounce, but later pared gains and fell to $1,320.61 an ounce today. Most gold stocks are gaining heavily after the Brexit news, including Goldcorp Inc. (USA) (NYSE:GG), Kinross Gold Corporation (USA) (NYSE:KGC), Barrick Gold Corporation (USA) (NYSE:ABX), Yamana Gold Inc. (USA) (NYSE:AUY) and IAMGOLD Corp (USA) (NYSE:IAG). Let’s examine their latest activity and see what the investors we track think about them.
Goldcorp Inc. (USA) (NYSE:GG)’s stock has surged more than 6% so far today. The Vancouver-based gold producer made a strong rebound today after trading in the red on Thursday. Investment firm RBC Capital Markets has recently upped its target price for the stock to $22. A total of 33 hedge funds from our database are bullish on Goldcorp Inc. (USA) (NYSE:GG) as of the end of the first quarter, up from 25 funds a quarter earlier. First Eagle Investment Management owns around 39.47 million shares of the company, according to its latest 13F filing.
Kinross Gold Rising After Brexit Results
Kinross Gold Corporation (USA) (NYSE:KGC)’s stock is trading 3.60% in the green so far today. Aside from the rally on the back of gold prices, the company also has announced recently that it had entered into an arrangement with Yorbeau Resources Inc to buy 100% stake in Yorbeau’s Rouyn property in Quebec, Canada. The company temporarily has suspended operations at Tasiast mine amid allegations of issuing invalid work permits. Jim Simons’ Renaissance Technologies is among the 28 funds tracked by us that owned shares of Kinross Gold Corporation (USA) (NYSE:KGC) at the end of the first quarter.
On the next page, we will discuss Barrick, Yamana and IAMGOLD.