Hedge Fund Gold Stocks
Hedge Funds Cut Back on Gold Stocks in Fourth Quarter
Paulson is still a bullion bull, but some of his peers are moving on to other sectors. Gold stocks and exchange trased funds represent 2.2% of the average hedge fund long portfolio, down from 2.9% in the second quarter of 2010, according to Goldman Sachs'(GS_) fourth-quarter Hedge Fund Trend Monitor, which dissects 699 hedge funds with $808 billion of long stock-specific and ETF equity assets. Excluding gold-related ETFs, gold stocks accounted for 1.5% of the average single-stock long portfolio, down from 1.8% in the quarter ended June 30.
Hedge funds are worried over the prospects of rising inflation and have devoted $23 billion to long positions in gold stocks and ETFs. About $8.6 billion of that exposure, or 38%, is in the form of the SPDR Gold Trust ETF, according to estimates from Goldman analysts. Newmont Mining(NEM_) is a stock favorite. Source