What are we looking for?
This is the last day we look at stocks some of the pros have been buying for their mutual funds.
Most companies will reveal their top holdings every quarter. Some will even do it every month. It pays to take a peek to get stock tips to start your own research. You may even decide to invest in the fund.
Today, we focus on Altamira Precious and Strategic Metal Fund. You can check out the top securities at National Bank of Canada's website at nbc.ca . We were able to get the top 15 holdings at Nov. 30.
More about the fund
The $60.7-million precious metals equity fund has been run by manager Paul Wong since February, 2008. Altamira Precious and Strategic Metal gained a robust 93.8 per cent for the year ended Nov. 30, and has posted an average annual return of 11.3 per cent over five years.
Mr. Wong is bullish on gold longer-term despite a recent pullback in its price from more than $1,200 (U.S.) per ounce. U.S. gold futures for February delivery on the New York Mercantile Exchange closed yesterday at $1,126.20. “Gold is under pressure until the U.S. dollar resumes its down trend,” he said.
The manager said he believes that the yellow metal could each $2,000 an ounce over the next two years. “Since the 2008 [stock market] meltdown crisis, every central bank around the world has been essentially printing money,” Mr. Wong said. “What that will do is to increase the value of physical assets [like gold].”
What did we turn up?
Many of the stocks have already posted stellar returns.
Still, Mr. Wong sees more upside in West African gold producer and explorer Red Back Mining Inc. Its two main projects are the Chirano mine in Ghana and the Tasiast mine in Mauritania.
There is more excitement with Red Back now because it recently reported “another significant mineralized zone” at its Tasiast property, he said. “It has potential to rapidly increase production.”
Red Back's production is expected to be more than 350,000 ounces this year, and should grow to more than 525,0000 ounces by 2011, he said.
Keegan Resources Inc., another stock in the top 15, is a junior gold company with assets in Ghana. The flagship property is the Esaase gold deposit. “There is a lot potential for reserve growth right now,” and the company is “probably a takeover target,” he said. “Whoever buys it should be able to bring it [mine] on fairly quickly.” Mr. Wong also sees more potential upside in Andean Resources Ltd., a junior miner which owns the Cerro Negro property in Argentina. “It's a very high-grade gold deposit,” and would be easy to bring into production, he said. “Andean also has eventual takeover potential.”
Top 15 holdings for Altamira Precious & Strategic Metal Fund to Nov. 30, 2009.
Company Ticker $ Price
Dec. 9 52-wk
high $ 52-wk
low $ YTD %
price chg
Andean Resources AND-T 2.38 2.75 0.42 150.5
Romarco Minerals R-X 1.44 1.84 0.12 747.1
San Gold Corporation SGR-X 3.50 4.13 0.91 191.7
Allied Nevada Gold ANV-A 12.99 14.69 3.10 156.7
Silver Wheaton SLW-T 16.23 18.34 4.25 102.9
Keegan Resources KGN-T 6.48 7.98 0.55 449.2
Lake Shore Gold LSG-T 3.77 4.37 0.67 165.5
Red Back Mining Inc. RBI-T 15.00 16.36 5.20 74.6
Rubicon Minerals RMX-T 4.31 4.94 0.91 203.5
Ventana Gold VEN-T 9.25 12.91 0.13 2469.4
Randgold Resources * GOLD-Q 81.38 90.30 35.70 85.3
Gammon Gold GAM-T 12.15 13.19 3.28 80.0
Golden Star Resources Ltd. GSC-T 3.73 4.59 0.56 200.8
Iamgold Corp. IMG-T 18.13 21.95 5.09 138.6
*Randgold in U.S. dollars. All other companies in Canadian dollars. **Claymore Gold Bullion Trust began trading in May. Source: Globe Investor, company
