Bill Baruch launches new mining portfolio

Mining Portfolio Strategy - The firm launched a new mining-focused portfolio modeled after its concentrated alpha portfolio, holding no more than ten names and allowing up to 50% cash [2][3] - The portfolio is initially leaning heavily into gold, but may include silver or copper miners [5][6] - The firm is allocating to the portfolio gradually over the coming months, acknowledging the recent run-up in mining stocks [7][8] Gold Market Analysis - Gold represents 20% of all central bank reserve assets, surpassing the euro [3] - Gold is now a tier one asset as of July 2025, potentially leading to gold-backed currencies [3][4] - The firm believes a tremendous supercycle for miners is underway due to expanded cash flow margins [4] Stock Selection & Performance - Top holdings include Newmont, Barrick, and Agnico Eagle, with Agnico Eagle being considered the best in breed due to its management and record highs [5][6] - Newmont and Barrick have room to catch up, as they are still below their 2022 and 2021 highs, respectively [7] - Wheaton Precious Metals is highlighted as a well-run company [8] Silver & Copper Opportunities - Silver is considered to have catching up to do with gold, with the gold-silver ratio expanded to 100 [9] - First Majestic Silver is included in the portfolio with the expectation of outperformance if silver rallies [9][10] - The firm monetized a move in copper and is monitoring the potential impact of a 50% tariff on US copper imports [11][12] Copper Tariff Implications - Morgan Stanley estimates that 36% of copper demand in the United States comes from imports, highlighting potential concerns related to the proposed tariff [14] - Freeport-McMoRan is positioned to benefit due to its leading copper mining capacity in the US, particularly at its El Paso, Texas facility [12][13]