Gold Is Back To Being Third Point's Top Holding

The last time we checked on the top 5 portfolio holdings of Mr. Pink's Third Point, we noticed that gold had surprisingly dropped to third position, behind Delphi and El Paso. Less surprising is that the fund, which has outperformed the S&P in July, returning 0.3%, and which increased in AUM by a whopping $800 million or well over 10%, has followed gold's surge to fresh all time highs, by once again making gold its top position. So in addition to the Bank of Korea, it appears that one of the key members of the hedge fund "think tank" is once again back and buying. If all of the $800 million in new capital went into gold, it tells you all you need to know about the ability to generate stock alpha in this market. Incidentally, how long before China, and its paltry gold reserves, finally gets the memo?

July letter: