(Kitco News) - Gold's price rally has certainly helped mining companies perform well so far this year, but more importantly, the miners themselves have become better managed companies, said Frank Holmes, CEO of U.S. Global Investors.
"What's really important is that a lot of these companies have become more lean, they're more efficient, so that's a positive part to it," Holmes told Kitco News from the floor of the NYSE.
Holmes attributed his fund's outperformance to a series of important financial metrics that were taken into consideration when picking the stocks for the ETF.
"We've finally taken 100 factors down to five, and then you don't equally weight them, you find out what works best in up markets and down markets, and the biggest worry we had is that in a run like this that we had up in gold, then it would lag, but actually it's working"
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.