In this article, we discuss 10 precious metal stocks to buy according to Ken Fisher. If you want to see more stocks in this selection, click 5 Precious Metals Stocks to Buy According to Ken Fisher.
Ken Fisher, the billionaire chief of Fisher Asset Management, is known for his belief in capitalism. Ken Fisher believes that demand and supply are the only determinants when it comes to pricing stocks. Ken Fisher advises investors to purchase securities for the long-term, and hold a portfolio of companies with solid growth prospects.
In the fourth quarter of 2021, the 13F portfolio of Fisher Asset Management was worth $178.5 billion, with a top ten holdings concentration of 31.58%. Investments are concentrated in the materials, information technology, industrials, healthcare, finance, communications, and energy sectors.
The securities filings for Q4 2021 reveal that the biggest buys of Ken Fisher were Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Microsoft Corporation (NASDAQ:MSFT), while his fund slashed stakes in Walmart Inc. (NYSE:WMT), The Walt Disney Company (NYSE:DIS), and Visa Inc. (NYSE:V).
The most notable stocks in Fisher Asset Management’s Q4 portfolio include Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and NVIDIA Corporation (NASDAQ:NVDA), among others discussed in detail.
Ken Fisher of Fisher Asset Management
Our Methodology
We used the fourth quarter portfolio of Ken Fisher for this analysis, selecting the precious metals stocks to buy according to the billionaire. We have mentioned the hedge fund sentiment around the holdings, as well as the available analyst ratings for the securities.
Precious Metals Stocks to Buy According to Ken Fisher
10. Century Aluminum Company (NASDAQ:CENX)
Number of Hedge Fund Holders: 19
Century Aluminum Company (NASDAQ:CENX) is a Chicago-based aluminum firm that produces standard and value-added aluminum products in the United States and Iceland. It is one of the leading producers of aluminum in the United States.
Securities filings for the reporting period Q4 2021 reveal that Ken Fisher boosted his stake in Century Aluminum Company (NASDAQ:CENX) by 4%, holding 2.4 million shares worth close to $40 million.
Century Aluminum Company (NASDAQ:CENX) reported its fourth quarter results on February 24, posting GAAP earnings per share of $0.59, above consensus by $0.64. The stock has gained 29% in the last month, as aluminum surged amid the Russia-Ukraine war.
Riley analyst Lucas Pipes raised the price target on Century Aluminum Company (NASDAQ:CENX) to $30 from $19 and kept a Buy rating on the shares on March 2. The analyst noted that while the volume guidance came in slightly lower than expected, he elevated the price target for Century Aluminum Company (NASDAQ:CENX) given an elevated aluminum price deck.
Among the hedge funds tracked by Insider Monkey, 19 funds were bullish on Century Aluminum Company (NASDAQ:CENX) at the end of the fourth quarter, up from 15 funds in the prior quarter. Robert Bishop’s Impala Asset Management is a significant shareholder of the company, with 1.3 million shares worth over $22 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and NVIDIA Corporation (NASDAQ:NVDA), Century Aluminum Company (NASDAQ:CENX) is a notable holding in Ken Fisher’s Q4 portfolio.
9. Southern Copper Corporation (NYSE:SCCO)
Number of Hedge Fund Holders: 19
Southern Copper Corporation (NYSE:SCCO) is a mining and exploration company from Phoenix, Arizona, engaged in the production of refined silver, gold, copper, and other precious metals. The company primarily conducts its mining and extraction in locations across Peru, Mexico, Argentina, Ecuador, and Chile.
In its fourth quarter 13F filings, Fisher Asset Management disclosed owning 3.5 million shares of Southern Copper Corporation (NYSE:SCCO), worth $221.8 million, accounting for 0.12% of the total holdings for the period.
Southern Copper Corporation (NYSE:SCCO) declared a $1.00 per share quarterly dividend on February 7, in line with previous. The dividend was paid on March 2, to shareholders of record on February 15. The stock yields 5.27% as of March 21.
On March 14, Southern Copper Corporation (NYSE:SCCO) slumped almost 7% as its chairman, German Larrea Mota Velasco, sold 100,000 shares of the company at $74.93 per share. The transaction amounted to approximately $7.5 million. Overall, the stock has gained 13.56% over the last month amid higher demand for precious metals.
According to the Q4 database of Insider Monkey, 19 hedge funds were long Southern Copper Corporation (NYSE:SCCO), compared to 23 funds in the prior quarter. Israel Englander’s Millennium Management is one of the largest shareholders of the company, with 1.2 million shares worth $78.4 million.
8. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 21
BHP Group Limited (NYSE:BHP) is an Australian mining company that extracts and sells copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal. The company has operations in Australia, Europe, China, Japan, India, South Korea, North America, and South America.
As per the regulatory filings for the fourth quarter of 2021, Ken Fisher’s fund owns 7.8 million BHP Group Limited (NYSE:BHP) shares, worth close to $471 million, representing 0.26% of the total holdings. Another prominent shareholder of the company is Arrowstreet Capital, with a $384 million stake at the end of December 2021. Overall, 21 hedge funds were bullish on the stock.
On February 23, BHP Group Limited (NYSE:BHP) declared a $3.00 per share semi-annual dividend, a 25% decrease from its prior dividend of $4.00. The dividend will be distributed on March 28, to shareholders of record on February 25.
HSBC analyst Shilan Modi initiated coverage of BHP Group Limited (NYSE:BHP) on March 18 with a Hold rating. The diversified miners have displayed operational improvements over the past five years, which means the sector will experience potential growth or cash returns, the analyst told investors in a research note.
Here is what Harding Loevner has to say about BHP Group (NYSE:BHP) in its Q1 2021 investor letter:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
7. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 22
Rio Tinto Group (NYSE:RIO) is a London-based mineral resources company that mines and markets aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. In Q4 2021, Ken Fisher increased its Rio Tinto Group (NYSE:RIO) stake by 2% to 13.5 million shares worth more than $907 million. The stock accounts for 0.50% of the total 13F securities for the fourth quarter.
HSBC analyst Shilan Modi on March 18 initiated coverage of Rio Tinto Group (NYSE:RIO) with a Hold rating, stating that quality is already priced into Rio Tinto Group (NYSE:RIO) shares. Overall, the analyst believes the mining and metals sector is positioned for potential growth or cash returns, given the operational improvements over the past five years.
On March 15, Rio Tinto Group (NYSE:RIO) slid 2.5% a day after disclosing plans to purchase the remaining 49% of Turquoise Hill Resources Ltd. (NYSE:TRQ), the holding company which controls the Oyu Tolgoi copper-gold mine in Mongolia, for approximately $2.7 billion. Shareholders of Turquoise Hill are aiming for a higher acquisition offer from Rio Tinto Group (NYSE:RIO) than the C$34 per share put forward by the company. The asking price could top C$50 per share, although Rio Tinto Group (NYSE:RIO) has not disclosed how much it is willing to pay. This makes the deal quite uncertain and open to scrutiny presently.
A total of 22 hedge funds were bullish on Rio Tinto Group (NYSE:RIO) at the end of December 2021, up from 20 funds in the previous quarter. Renaissance Technologies owned a prominent stake in the company at the end of Q4, worth $88.5 million.
6. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Vale S.A. (NYSE:VALE) was founded in 1942 and is headquartered in Rio de Janeiro, Brazil, primarily selling iron ore and iron ore pellets to the steelmaking industry in Brazil and internationally. The company also extracts nickel and its by-products, including gold, silver, cobalt, and copper.
Ken Fisher’s fourth quarter filings reveal that his fund owns approximately 31 million shares of Vale S.A. (NYSE:VALE), worth $434.3 million, representing 0.24% of the total 13F portfolio.
On March 7, Vale S.A. (NYSE:VALE) climbed 2.2% despite a slow day for stocks, including global mining peers. Due to soaring nickel prices amid the Russian crisis, Vale S.A. (NYSE:VALE) benefited as it is one of the biggest producers of nickel, which accounted for 6% of its 2021 revenues.
Deutsche Bank analyst Liam Fitzpatrick raised the price target on Vale S.A. (NYSE:VALE) to $20 from $19 and kept a Buy rating on the shares on March 10. He told investors that his raised price target was due to the “unprecedented supply shock” in the commodities market from the Russia-Ukraine conflict, and Vale S.A. (NYSE:VALE) being a clear winner in its category.
The database of elite funds maintained by Insider Monkey in Q4 2021 reported that 22 hedge funds were bullish on Vale S.A. (NYSE:VALE), compared to 27 funds in the previous quarter. Orbis Investment Management is a prominent shareholder of the company, with more than 15 million shares worth $212.8 million.
Vale S.A. (NYSE:VALE) is gaining the attention of institutional investors, just like Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and NVIDIA Corporation (NASDAQ:NVDA).
Here is what Miller Value Partners has to say about Vale S.A. (NYSE:VALE) in its Q3 2021 investor letter:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
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Disclosure: None. 10 Precious Metals Stocks to Buy According to Ken Fisher is originally published on Insider Monkey.
