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Hedge fund SAC puts $628 million into gold ETF options
Watch them expire worthless a day before gold's next explosion.
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SAC's Steve Cohen: Gold Bug?
By Shira Ovide
The Wall Street Journal
Monday, August 15, 2011
http://blogs.wsj.com/deals/2011/08/15/sacs-steve-cohen-gold-bug/
Has one of the world's biggest hedge-fund managers turned into a gold bug?
SAC Capital Advisors L.P., the hedge fund run by Steven Cohen, disclosed a new position in options on the gold exchange-traded fund, SPDR Gold Trust.
The investment, options that allow SAC Capital to buy shares of the gold ETF at a defined point in time, is valued at $628 million, the single largest value of equity positions disclosed by SAC Capital, according to the hedge fund's quarterly snapshot of its U.S. investment holdings.
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Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site
The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing.
The conference call is 18 minutes long and you download an mp3 of it here:
http://www.goldenphoenix.us/audio/GPXMCC071211.mp3
Or play back the call here:
http://goldenphoenix.us/conferencecalls/
Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here:
Cohen disclosed the holdings in a regulatory filing Monday that showed the hedge fund's U.S. stock, options, and other positions as of June 30. As of March 31, he disclosed no holdings of the gold ETF.
Gold is considered a hedge against market panic or volatility, and recent market turmoil has helped drive up the value of the commodity to near-record highs on a non-inflation-adjusted basis.
The gold ETF, meanwhile, ended Monday's session at $171.80 a share, up about 24% since the end of 2010. It's unclear how much SAC Capital paid for its ETF options.
Among SAC's other quarterly disclosures, the hedge fund decreased its stock position in Newmont Mining Corp. to 2.18 million shares from 4.6 million at the end of march. He also cut his holdings in retailer BJ's Wholesale Club Inc., which has agreed to be acquired, to about 996,000 shares from more than 2.8 million at the end of March.
Cohen also more than doubled his stock holdings in Apple Inc. to 598,000 shares. He also slashed his holdings in General Electric Co. to 680,319 shares from 6.89 million at the end of March.
SAC Capital also disclosed a small position of 20,000 shares in LinkedIn, the social-networking company that had its IPO in May.
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Prophecy Platinum Reports 10.97 Million Ounces Inferred
and 1.04 Million Ounces Indicated PGM+Gold in Yukon
An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says.
The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper.
Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P.
For the complete press release on the Wellgreen report, please visit:
http://prophecyplat.com/news_2011_july14_prophecy_platinum_new_resource_...
