Surge in Gold Prices Lifted New Gold (NGD)
Meridian Funds, managed by ArrowMark Partners, released its 'Meridian Contrarian Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities saw their weakest quarterly performance since 2022, as uncertainty about potential tariff policies affected investor sentiment and risk assets. In this environment, the fund returned -7.59% (net) during the quarter, slightly behind the -7.50% returns of the Russell 2500 Index and underperforming the -5.83% returns of the secondary benchmark, the Russell 2500 Value Index. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Meridian Contrarian Fund highlighted stocks such as New Gold Inc. (NYSEAMERICAN:NGD). Headquartered in Toronto, Canada, New Gold Inc. (NYSEAMERICAN:NGD) is a gold mining company. The one-month return of New Gold Inc. (NYSEAMERICAN:NGD) was 12.53%, and its shares have appreciated by 97.95% over the past 52 weeks. On May 28, 2025, New Gold Inc. (NYSEAMERICAN:NGD) closed at $4.40 per share, with a market capitalization of $3.48 billion.
Meridian Contrarian Fund stated the following regarding New Gold Inc. (NYSEAMERICAN:NGD) in its Q1 2025 investor letter:
"New Gold Inc. (NYSEAMERICAN:NGD) is a mid-tier gold miner with potentially favorable Canadian-based mining assets. The stock had long underperformed due to past operational missteps and capital allocation issues. However, a new CEO appointed in 2022 launched a comprehensive turnaround, including a strengthened management team and renewed operational discipline that would take advantage of its favorable mining properties, including its New Alton mine. Despite a neutral stance on gold prices, we viewed the company's efforts to unlock value from its core assets as a catalyst for differentiation. The stock appreciated during the period as gold prices reached new highs on geopolitical uncertainty. We increased our position early in the quarter as internal execution improved and gold miners lagged the commodity price."
Aerial view of an open mine with large cranes and excavators working on the surface.
New Gold Inc. (NYSEAMERICAN:NGD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held New Gold Inc. (NYSEAMERICAN:NGD) at the end of the first quarter, which was 26 in the previous quarter. While we acknowledge the potential of New Gold Inc. (NYSEAMERICAN:NGD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered New Gold Inc. (NYSEAMERICAN:NGD) and shared the list of best multibagger penny stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
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