Australian miner, BHP Group (BHP, Financial), declined due to weakening iron ore prices. Prices peaked in the second quarter of 2019 on the back of supply disruptions caused by the Vale dam disaster. In recent months, iron prices have moderated 25-30% as capacity came back online, while demand slackened in China. The materials sector is commonly considered a bellwether for global economic activity; negative results could suggest further economic weakness in the months ahead, for which we are prepared.
From Bernard Horn (Trades, Portfolio)'s third-quarter 2019 Polaris Global Value Fund shareholder letter.
