Ariel Investments, an investment management firm, published its “Ariel Fund”, “Ariel Appreciation Fund”, “Ariel Focus Fund”, “Ariel International Fund”, and “Ariel Global Fund” second-quarter 2021 investor letter – a copy of which can be downloaded here. A return of 5.52% was recorded by Ariel Fund for the second quarter of 2021, 4.8% by Ariel Appreciation Fund, 4.0% by Ariel Focus Fund, 5.3% by Ariel International Fund, and 6.2% by Ariel Global Fund for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Barrick Gold Corp (NYSE:GOLD) is one of them. Barrick Gold Corp (NYSE:GOLD) is a mining company that produces gold and copper with 16 operating sites in 13 countries. In the last three months, Barrick Gold Corp (NYSE:GOLD) stock lost 13%. Here is what the fund said:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”