Midas Fund - gold investing for capital appreciation and a hedge against inflation |
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Midas Fund is seeking primarily capital appreciation and protection against inflation and, secondarily, current income. In the first half of 2011, gold prices fluctuated between $1,319 and $1,552 per ounce, averaging about $1,447 and ending the period at $1,505 (all prices based on the London pm fix). The gold price has recently continued to strengthen to over $1,740, apparently on worries of global fiscal instability and downgrading of United States debt to AA+. The quality senior and intermediate precious metals producers in which Midas is invested fell with the overall stock market but currently seem to be recovering. Stocks of smaller capitalization companies and project developing companies in the portfolio generally remain at depressed levels. Importantly, well managed producing mining companies are continuing to report strong earnings and cash flow growth, and are seeing their share prices rewarded. Midas Fund has maintained leveraged, with holdings emphasizing financially robust, quality, gold miners deemed to have reasonable valuations in view of potential growth from operations in relatively politically stable countries.
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Midas Magic – leveraged in quality companies for capital appreciation |
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Midas Magic is hewing to its discipline of focusing on globally oriented, giant companies for its concentrated portfolio, including the stocks of some of the financially strongest companies in finance, technology, insurance, and banking, using aggressive leverage. At the same time, the Fund continues to seek new quality investments with unique combinations of strength in operations, products, and finances, while offering investors either growth or value, or both. As the markets fluctuate, the Fund may seek to opportunistically employ its flexible investment strategy to enhance returns with additional leverage and other speculative techniques, or seek a defensive investment position. Our current view of financial markets suggests that the Fund may benefit during the remainder of 2011 from its flexible portfolio approach, investing opportunistically, and employing aggressive and speculative investment techniques as deemed appropriate.
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Midas Perpetual Portfolio - asset allocation strategies |
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Midas Perpetual Portfolio’s objective is to preserve and increase the purchasing power value of its shares over the long term. The Fund seeks its investment objective by employing a strategy of "Target Percentage" investing, allocating its assets in each of the following categories: gold, silver, Swiss franc assets, hard asset securities, large capitalization growth stocks, and dollar assets. Gold and silver investments can include bullion, bullion type coins, bullion exchange traded funds, and mining company shares. During the recent market weakness, the Fund’s overall portfolio showed impressive relative stability and balance, reflecting its investment policies. Increasing gold and silver prices balanced declines in equities. The Swiss franc assets appreciated as the U.S. dollar weakened. Thus, the Fund’s disciplined approach appears to navigating market turmoil in a way that does not depend on any particular outcome for the economy. In essence, the investment strategy of Midas Perpetual Portfolio acknowledges a broad range of economic possibilities and investing outlooks, and seeks to provide investments appropriate for each of them. |
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