Canada-based New Gold (TSX:NGD, Financial) addressed concerns that it might be overleveraged by announcing a new equity offering. The company’s bonds also benefited from the rise in the price of gold during the quarter. Over time, New Gold’s bonds have been affected by investor disappointment with the performance of the company’s Rainy River project. Believing that further volatility is likely, we took the opportunity to sell our New Gold bonds as their price approached par.
From First Eagle Investment (Trades, Portfolio)'s High Yield Fund third-quarter 2019 shareholder letter.
