James Marlay

Paradice Investments one of Australia's leading boutique fund managers has emerged as a substantial holder in three battered Australian Gold stocks. Paradice has snapped up holdings in excess of 5% in Perseus Mining (PRU), Kingsgate Consolidated (KCN) and Alacer Gold (AQG). Based on today's prices Paradice now has a $220million dollar exposure to gold equities through these stocks. The 12 month performance on all three has been disastrous with Kingsgate shedding over 80% of it's value and Perseus over 70%. Paradice has a stated strategy of identifying inefficiencies in the market arising due to excesses in investor emotion, short term investment horizons and disproportionate focus on a company's P&L statement. Paradice's small cap fund has delivered a 18% return since it's June 2000 inception providing investors with a 12% outperformance against it's benchmark. (VIEW LINK)


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