Weakening participation in the Nasdaq rally signals a possible market top, says Crescat Capital founder and CEO Kevin Smith, whose firm hedges some funds against a selloff that could also hit junior miners.
Alongside that defensive positioning, Crescat is backing explorers, with Smith naming BCM Resources (TSXV: B), Sitka Gold (TSXV: SIG) and Eloro Resources (TSX: ELO) as its three largest holdings. Their principal projects are Thompson Knolls in Utah, RC Gold in Yukon and Iska Iska in Bolivia, respectively.
“And we found that the best way to invest in the segment is through a diversified portfolio,” he told The Northern Miner’s Western Editor, Henry Lazenby, last month at the Precious Metals Summit in Beaver Creek, Colo.
The firm manages $600 million (C$855.9 million), with more than 70 companies in its activist metals portfolio, Smith said. Its strategy centres on financing drilling to establish and expand discoveries. He expects further results to enlarge Sitka’s gold resource, while acknowledging that exploration remains a risky investment.
Watch the full interview below:
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