BOSTON (TheStreet) -- Tocqueville Asset Management, a contrarian hedge-fund firm with $9.4 billion in assets, is top heavy with gold- and silver-company stocks as they make up seven of its 10 biggest holdings.
Gold is seen as a safe haven in times of market turmoil and, given the seesawing equity markets, the weaker outlook for the economy and the sovereign-debt crisis, the precious metal has gained 22% this year and is heading for an 11th straight annual gain, the longest streak since at least 1920. Gold rose to a record $1,814.95 an ounce last week and was trading at around $1,740 on Monday.
But gold-mining companies' shares, as tracked by Morningstar, are down 3% this year.
John Hathaway, Tocqueville's senior managing director, oversees the hedge fund's 933-stock portfolio. Its largest holding, at 1.8% of the portfolio and valued at $168 million, is the world's second-biggest gold producer, Newmont Mining (NEM), which has seen its shares slide 6% this year.Right behind it in the portfolio is Ivanhoe Mines (IVN), at a $160 million position. The company owns mines primarily in Asia. The stock is also a favorite of Fidelity funds, which own 5.9% of its shares collectively, and Tocqueville Gold Fund (TGLDX), a part of Tocqueville Asset Management, which has a 5.1% stake. Ivanhoe's shares are down 9% this year, but are up 23% over the past 12 months. The fund's fourth-largest holding is Goldcorp (GG), at 1.3% of the portfolio and worth $118 million. It's a Canadian-based mining company with operations in Canada, the U.S., Mexico and Latin America. Its shares are up 9% this year and 25% over the past 12 months. Fidelity is another big buyer of this company, with 6.6% of its outstanding shares. The fourth-largest holding, Silver Wheaton (SLW), is an unhedged paper proxy on silver prices. It purchases silver for sale through long-term purchase contracts from counterparties. Its shares are down 4.3% this year but up 89% over the past 12 months. Other top-20 fund holdings related to gold mining include: Gold Resource (GORO), Osisko Mining (OSK), Randgold Resources (GOLD) and Atac Resources (ATC), according to the fund's latest 13F filing at June 30.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV