Crescat Capital discusses taking activist stakes in gold and silver deposits.
In Crescat’s view there has never been better time to sell overvalued stocks at large and to buy undervalued gold mining shares. That is how Crescat is positioned in its hedge funds. These two non-correlated themes have both been working extremely well in the past few weeks with much more poised to play out in the near term in our strong opinion.
Philip Carret was an investor and founder of Pioneer Fund, one of the first mutual funds in the United States. Carret ran the mutual fund for 55 years, during which time an investment of $10,000 became $8 million. That suggests he achieved a compound annual return of nearly 13% for his investors. Q1 2021 hedge Read More
We own gold mining shares across the entire market cap spectrum at Crescat. However, in our hedge funds and precious metals SMA strategy, we are overweight the smaller cap segment of the industry today where we believe there is tremendous value and growth opportunity.
Activist Stakes Gold And Silver Deposits
In fact, we have been going one step further. We have been taking activist stakes in potentially big and highly economic gold and silver deposits in the hands of undervalued junior mining companies. In our hedge funds, we have been participating in select private placements often at discounts to the public share price in these opportunities. In some cases, we have taken the lead investor role.
In our recent letter, we introduced Crescat’s new activist strategy in the precious metals industry in coordination with renowned exploration geologist, Quinton Hennigh, PhD, who is serving as Crescat’s geologic and technical advisor. In the video link below, along with Quinton, we describe our strategy and disclose two of our positions, Eloro Resources and Condor Resources. We encourage you to watch the video where we explain the opportunity in each of these companies.
Stay tuned for more videos from Crescat and Quinton as we disclose more of the companies in which we are taking significant stakes. We look forward to telling the story behind each of these precious metals’ assets. Our next live video is scheduled for 2PM Eastern time this Thursday, July 2 where we will profile one of our companies that owns some of the most promising ground in British Columbia's Golden Triangle. Click on the link below where you can set a calendar reminder.
The charts for Eloro and Condor below illustrate the stock price appreciation since we negotiated our stake in these companies on behalf of Crescat’s hedge funds and later infused them with important growth capital to advance these exciting precious metals discoveries.
We also wanted to take this opportunity to notify Crescat’s SMA investors of our new SEC Form CRS Relationship Summary in the link below. It is our new disclosure requirement on file with the U.S. Securities and Exchange Commission.
In addition, we are re-sending our newest ADV Part II, which we file annually with the US Securities and Exchange Commission. It outlines two material changes from the prior year: The restructuring of the Crescat Global Macro Fund and the launching of Crescat’s new precious metals separately managed account strategy.
Crescat Capital LLC
Kevin C. Smith, CFA
Founder & Chief Investment Officer
Partner & Portfolio Manager