Post says fund manager unwinds Yamana Gold holding
Ticker Symbol: C:YRI

Post says fund manager unwinds Yamana Gold holding

Yamana Gold Inc (C:YRI)
Shares Issued 732,938,039
Last Close 7/2/2009 $10.65
Friday July 03 2009 - In the News

The Financial Post reports in its Friday edition that Peter O'Reilly, portfolio manager with Investors Group, has been exiting his position in Yamana Gold. The Post's Jonathan Ratner, writing in Buy & Sell, says Mr. O'Reilly originally bought the stock in 2007 as part of an effort to make the portfolio more defensive. Mr. O'Reilly says gold companies have been very disappointing in this cycle because their ability to monetize high bullion prices has been poor. So while they may be good at finding gold, they are not taking it out of the ground efficiently. The manager is also no longer constructive on the gold price, suggesting that industrial metals like platinum and copper have more to offer. "Yamana had good defensive attributes because of its link to the gold price, but I think the allure of gold is likely to dissipate as we continue to see financial markets become a little more orderly," Mr. O'Reilly says. Over all, the manager says several forward indicators suggest signs of expansion and a bottoming of the economic cycle, but the restocking process is really what is driving the market. Destocking took the largest amount of U.S. GDP in the fourth and first quarters on record, he adds.

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