Extreme volatility has seen ASX listed gold stocks rally by nearly 40% over the last 12 months and, with the full economic impacts of COVID-19 starting to be felt many investors are looking at ways to increase their exposure to the precious metal.
But which of the wide array of physical, ETF and large / small cap stocks available to investors is the best path to take? How much gold is enough and what sort of due diligence should an investor undertake in order to fully understand the risks and opportunities on offer in the gold sector?
To that end, Michael Goldberg (Managing Director & Portfolio Manager) and Rob Hay (Head of Distribution and Investor Relations) recently hosted an educational webinar outlining Collins St Asset Management’s views on the outlook for gold as well as some deep dive due diligence on two of their preferred ASX listed stock picks in this sector.
A recorded copy of the webinar can be accessed for free by clicking here.
ASX listed gold stocks account for approximately 10% of the Collins St Value Fund as at the 17th of June 2020, with exposure being gained via a combination of on-market transactions and off- market convertible funding facility investments that were negotiated and executed directly with company management.
The Collins St Value Fund is 5 star rated by Morningstar (since inception and for the rolling 3 year period to 31 May 2020) and is ranked #1 in its category based on performance over the same 3 year period.
On an after-fee basis the Fund has delivered investors 11.7% p.a. since February 2016 and has never taken an investment management fee unless investors have first made a profit above the performance hurdle and high-water mark of the Fund.
About the Collins St Value Fund
Ranked #1 out of 97 peers over the 3 years to 31 May 2020 based on after fee returns by
Morningstar, the Collins St Value Fund brings a distinctively different approach to the
management of Australian equities.
Net returns since inception in 2016 of 11.7% p.a. have been underpinned by a range of bespoke convertible note, take-over arbitrage, special dividend and management buy-out investments, alongside unconstrained access to any ASX listed stock. This leads to a distinctively different portfolio which is presently invested in a selection of uranium, gold, financial services, infrastructure and pharmaceutical companies amongst others.
Investments in the Collins St Value Fund attracts absolutely no fixed management fees. The only remuneration the Fund Manager receives is success based and requires that investors make money before they do.
Put simply, if the unit price doesn’t go up, the investor pays no management fees. This
incentivises capital preservation and a close eye on capacity. Alignment of interests doesn’t get any closer than that!