ASA Limited (NYSE:ASA)
ASA Limited was established in Bermuda and is a closed - end investment company.
The original company was set up in the Republic of South Africa in 1958. The Company is a non-diversified investment company and is registered in the United States under the Investment Company Act of 1940. The Company is managed internally by its directors and officers,the majority of whom are United States citizens. The executive offices of the Company are located in Buffalo, New York. It employs contractors in the United States to provide it with compliance, accounting,administrative and shareholder services.
The Company provides investors a vehicle to invest in a portfolio consisting primarily of the stocks of companies engaged in the exploration, mining or processing of gold, silver, platinum, diamonds and other precious minerals. It may also invest in gold, silver and platinum bullion or securities that seek to replicate the price movement of gold, silver or platinum bullion.
ASA LTD has approximately $537 million in assets under management. It invests in the public equity markets across the globe.
Renaissance Technologies is a hedge fund management company. It was started by mathematician Jim Simons in 1982. Its $5 billion Medallion Fund has averaged 35% annual returns, after fees, since 1989. Renaissance hires only top PhD’s in math and science. Renaissance’s Medallion Fund has been the most consistently successful hedge fund. The Medallion Fund tries to exploit very short-term market inefficiencies in highly liquid stocks and futures.
Renaissance owned about 50 closed end funds in their 12/31/2006 report. Their largest closed end fund holding was ASA (Bermuda) Limited (NYSE: ASA). This is a telling sign that they expect the commodities bull market to carry on for some time yet. We believe it will too.
ASA LTD could be the perfect, cost effective way to gain exposure to the precious metals bull run.
Top 10 Holdings $ Value % of Portfolio
Gold Fields Limited Depository Receipts $177,804,510 25.87%
AngloGold Ashanti Ltd Depository Receipts $111,342,600 16.20%
Anglo American PLC $54,502,890 7.93%
Anglo Platinum Ltd $54,227,970 7.89%
Newcrest Mining Ltd Depository Receipts $44,949,420 6.54%
Impala Platinum Holdings Ltd Depository Receipts $40,481,970 5.89%
Harmony Gold Mining Co Ltd Depository Receipts $31,615,800 4.60%
Newmont Mining Corp $27,217,080 3.96%
Goldcorp Inc $26,873,430 3.91%
Compania de Minas Buenaventura SA Depository Recei $26,735,970 3.89%
The above portfolio of holdings gives the diversity that you need in the metals sector and can be traded as one stock. The shares are currently trading at a discount to their net asset value of 14.26%, and have a low expense ratio of 0.63%. Currently the Gold Price is US$655.40. If Gold and other precious metals move higher over the coming months, then so will ASA.
Buy ASA LTD (NYSE:ASA). These shares could turn in a glittering performance over the next year.