WMA Cara Natural Resources portfolio report for Nov. 2017
  • December 03, 2017 12:11 pm
  • by Bill Cara

During the month ending November 30, the Natural Resources portfolio managed to substantially outperform the IGE benchmark with the help of four outstanding trades. Selling California Resources (CRC) at $16.32 with a cost of $7.81, Fairmount Santrol (FMSA) at $4.84 with cost of $3.09, Baytex Energy (BTE) at $3.35 with a cost of $2.50 and Carrizo Oil&Gas (CRZO) at 19.86 with a cost of 14.22, resulted in substantial gains. Unfortunately, the portfolio also suffered from lower prices in most of the Gold and Silver Miners this month. However, in summary, the portfolio gained +6.36% in November, which beat the benchmark (IGE +1.54%) by an outstanding +4.82%. Over three months, the portfolio is up +11.08% whereas the IGE benchmark has gained 7.11%.

Because of the higher Crude Oil prices, energy stocks are likely to continue enjoying gains through December. As for the lagging Miners, inflation has started to pick up and central banks are raising rates, which is a signal to us that the Gold and Copper commodity cycles will soon follow the oil and gas cycle. So, we are prepared to hold our positions in the Miners for now.


The sales of BTE and CRZO were 90% positions. Through the balance of the month, we maintained that holding of CRZO but added to BTE at $2.97 in what is now a full position again. In fact, as at Dec 1, BTE is up over +18% since we bought back that position on Nov. 16; so, we benefitted with the sale and also with the purchase. With cash from the other gains, we increased our holdings in Crescent Point Energy (CPG at $7.54), Callon Petroleum (CPE at $9.95) and Gulfport Energy (GPOR at $12.94) in the energy sector. On Dec. 1, our energy holdings gained substantially, with many of them up over 3% on the day.

Not everything is going well however. During the month, we did add to positions in four Silverminers: McEwen (MUX at $2.01), Coeur (CDE at $7.19), Hecla (HL at $3.93), and Fortuna (FSM at $4.19) and Goldminer New Gold (NGD at $3.22) plus Uranium Miner Cameco (CCJ at $9.07). By month-end, our Gold and Silver Miners are still not gaining the traction we had anticipated. CDE and CCJ have performed very well since the trades, but HL and NGD have not.  Moreover, we continue to hold a full position in First Majestic Silver (AG at $7.26), which is now down about -7.2%.

On Dec. 1, the portfolio gained a substantial +1.94%.

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