Gold-miner Newmont Mining (NEM) is up over 40% in the past month, while the yellow metal itself is only up 10%. Dan Denbow, portfolio manager of the USAA Precious Metals and Minerals Fund (USAGX), said the surge in Newmont’s stock is a testament to CEO Gary Goldberg’s diligence during gold’s downturn. ‘Gary Goldberg came in and right-sized the organization and has been cutting costs,’ said Denbow. ‘He has delivered operating leverage which is why you own gold miners versus gold when you think gold is going to go up.’ The USAA Precious Metals and Minerals Fund is up 26.6% thus far in 2016, according to fund-tracker Morningstar. The $563 million fund has lost an average of 2% annually over the past ten years, outpacing 67% of its Morningstar peers. Denbow also likes Randgold Resources (GOLD), up 39% in the past month, saying the company’s CEO Dennis Bristow likes to operate in difficult African locations, but is able to pull it off. ‘He is the one CEO you can trust to do it,’ said Denbow.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
