Donald Smith (Trades, Portfolio), CIO of the firm that bears his name, likes to invest in companies that are out of favor but have positive earnings potential in the next 2-4 years. One of the most noteworthy things about his second-quarter activity was how much of it involved companies that mine gold. Conventional wisdom holds that demand for and prices of gold go up when demand for and prices of stocks go down. Gold has been experiencing a price slump in recent months.
Smith added 22,147,678 shares to the ninth-most valuable stake in his portfolio, Kinross Gold Corp. (NYSE:KGC), Canadian-based gold mining company. Smith paid an average price of $2.38 per share. The transaction had a 1.14% impact on his portfolio. Continue Reading »