How Did Hedge Funds’ Top Gold Stocks Perform in Q2 Amid Post-Brexit Uncertainty?

#3. Freeport-McMoRan Inc. (NYSE:FCX)

 – Investors with long positions (as of March 31): 34

 – Aggregate value of investors’ holdings (as of March 31): $1.59 Billion

 – Q2 Return: 7.7%

Freeport-McMoRan Inc. (NYSE:FCX) fell out of favor with the hedge fund vehicles monitored by our team during the January-to-March period, as the number of funds with equity investments in the company fell to 34 from 37 quarter-over-quarter. Nonetheless, the overall value of those investments rose by 54% quarter-over-quarter to $1.59 billion, owing to the 53% gain in the value of Freeport-McMoRan shares. The world’s largest publicly-traded copper producer, which also engages in the sale of gold, saw its shares gain a mere 7.7% in the second quarter due to worries over the company’s heavy debt load. The disappointing stock performance reflects Freeport’s ill-timed decision to expand into the oil and gas business several years ago by acquiring McMoRan Exploration Co. and Plains Exploration, which significantly weakened the company’s balance sheet. The indebted company completed a series of asset sales earlier this year to strengthen its balance sheet, with two deals completed in May generating $3.65 billion in cash. Carl Icahn’s Icahn Capital LP had 104.00 million shares of Freeport-McMoRan Inc. (NYSE:FCX) among its holdings at the end of March.

#2. Newmont Mining Corp (NYSE:NEM)

 – Investors with long positions (as of March 31): 37

 – Aggregate value of investors’ holdings (as of March 31): $896.85 Million

 – Q2 Return: 47.3%

The number of hedge funds followed by Insider Monkey with long positions in Newmont Mining Corp (NYSE:NEM) climbed to 37 from 36 during the first quarter of 2016, while the overall value of those positions rose by 69% quarter-over-quarter to $896.85 million. The shares of the world’s second-largest gold producer gained an impressive 47% during the April-to-June quarter. Just recently, the U.S gold producer announced the sale of its 48.5% economic interest in the Batu Hijau copper and gold mine in Indonesia to a local company called PT Amman Mineral Internasional for $1.3 billion. The sale of its Indonesian copper and gold assets will reduce Newmont Mining’s dependence on copper, narrow its geographic focus, as well as strengthen its balance sheet and provide funding for other projects. The company reported sales of $2.03 billion for the first quarter of 2016, up from $1.97 billion posted a year earlier, due to higher sales volumes. Newmont’s shares are 124% in the green year-to-date. Ken Griffin’s Citadel Advisors LLC owns 2.35 million shares of Newmont Mining Corp (NYSE:NEM) as of March 31.

#1. Barrick Gold Corporation (USA) (NYSE:ABX)

 – Investors with long positions (as of March 31): 49

 – Aggregate value of investors’ holdings (as of March 31): $2.73 Billion

 – Q2 Return: 57.4%

The hedge fund sentiment towards Barrick Gold Corporation (USA) (NYSE:ABX) increased during the first quarter of 2016, as the number of funds in our system with stakes in the company jumped to 49 from 40 quarter-over-quarter. Meanwhile, the aggregate value of those stakes rose to $2.73 billion from $1.16 billion, owing partly to an 84% gain in the value of Barrick Gold’s shares during the first quarter. The shares of the world’s largest gold producer have gained an additional 57% in the second quarter, pushing the stock to whopping gains of 203% thus far in 2016. The Canadian gold producer plans to reduce its total debt by at least $2 billion in 2016, with 42% of its debt reduction target having already been met. The company has reduced its debt load by $3.95 billion since the start of 2015 and plans to reduce its current debt burden of $9.1 billion to below $5 billion in the medium-term. George Soros’ Soros Fund Management added a 19.42 million-share stake in Barrick Gold Corporation (USA) (NYSE:ABX) to its portfolio during the March quarter.

Disclosure: None