ASSET MANAGER STILL GOES FOR GOLD
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.