Billionaire Investor's Top Gold Stock Holding Gains 75% in 2023

Triple Flag Precious Metals is a gold stock near its all-time high with a 75% gain this year. Despite this, a key metric suggests there is still upside potential. Billionaire investor Paul Singer's hedge fund Elliot Management holds a significant stake in the company.

Elliott Investment Management, led by billionaire investor Paul Singer, has made a significant shift in its investment strategy, allocating 52.3% of its $17.59 billion portfolio to four key stocks: Triple Flag Precious Metals, Phillips 66, Suncor Energy, and Southwest Airlines [1]. This strategic pivot reflects a move towards the precious metals and energy sectors, potentially anticipating inflation or commodity price surges.

The largest holding, Triple Flag Precious Metals Corp. (TFPM), a royalty and streaming company focused on gold and silver, commands 18% of the portfolio at $3.17 billion, unchanged from the first quarter [2]. This bet on precious metals is further bolstered by a doubled position in VanEck Gold Miners ETF (GDX), now at 1.2% of the portfolio. The energy sector is represented by Phillips 66 (PSX), which saw a 22% increase in shares, totaling $2.30 billion, and Suncor Energy Inc. (SU), which maintained a stable $1.97 billion position.

Southwest Airlines Co. (LUV), at $1.75 billion or 10% of the portfolio, rounds out the top four, indirectly tied to energy as a major fuel consumer. This move reflects Elliott's activist investment approach, with the hedge fund aiming to capitalize on potential opportunities in different market segments.

The strategic pivot underscores the importance of diversifying investment portfolios in anticipation of economic shifts. The hedge fund's active engagement in various sectors, including real estate and energy, reflects a proactive approach to capitalizing on potential opportunities in different market segments.

References:
[1] https://www.ainvest.com/news/elliott-investment-17-59b-portfolio-invests-4-stocks-2508/
[2] https://www.benzinga.com/markets/hedge-funds/25/08/47383253/billionaire-investor-paul-singer-has-over-half-of-elliott-investments-portfolio-invested-in-these-four-stocks