AS­SET MAN­AGER STILL GOES FOR GOLD

Finweek English Edition - - TECHNOLOGY -

Al­lan Gray took a 10.13% stake in Sibanye Gold, which has got many ex­cited as it surely means Al­lan Gray sees value at cur­rent lev­els. A fair point, but it misses the big­ger pic­ture. Some­times even the glam­our as­set man­agers get it wrong. Al­lan Gray also holds some 5.35% in An­gloGold Ashanti and 6% in Har­mony. Now con­sid­er­ing that both th­ese stocks are trad­ing at around 10-year lows re­gard­less when Al­lan Gray took th­ese two po­si­tions, they have been dud in­vest­ments. Just be­cause a big as­set man­ager is buy­ing, doesn’t make the stock guar­an­teed to go up.

Sibanye Gold

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