McAlvany's Gold Bet
McAlvany Wealth Management Pours $13.8M into Gold ETF, Reflecting Broader Commodity Shift
Key Points
In its new gold position, McAlvany bought 161,505 shares of SPDR Gold MiniShares Trust (GLDM) worth about $13.788M; GLDM made up 10.6% of the firm’s portfolio and was its 2nd-largest holding, with McAlvany owning 0.05% of the trust’s shares at quarter-end.
For Franco-Nevada (FNV), Weiss Ratings specifically lowered the stock from a “buy (b)” to a “buy (b-)” in a June 8 note, while TD Cowen upgraded FNV from “hold” to “buy” and trimmed its target from $292 to $291 (including a May 20 upgrade).
In OR Royalties (OR), the filings highlight other large holders’ scale: Goldman Sachs increased its position by 152.4% in the first quarter to 1,256,583 shares (about $26.539M), while JPMorgan Chase & Co. boosted its stake by 58.3% to 205,176 shares (about $5.275M).
Southern Copper (SCCO) activity also included an insider transaction: director Bonilla Luis Miguel Palomino sold 200 shares on May 21 at an average $177.82 (total $35,564), reducing his stake by 9.97% to 1,807 shares; the article also notes total insider sales of 404 shares worth $74,108 over the prior three months.
McAlvany Wealth Management LLC has put $13.79 million into the SPDR Gold MiniShares Trust (GLDM), making it the firm's second-largest holding at 10.6% of its total portfolio, according to Watchlist News. The Colorado-based manager bought 161,505 shares, giving it a 0.05% stake in the low-cost gold ETF, which charges just 0.10% annually — about one-third the cost of its larger rival, GLD.
The GLDM buy is the centerpiece of a broader pivot into hard assets. McAlvany also added $4.65 million in gold royalty firm Franco-Nevada, $2.7 million in OR Royalties, $2.25 million in pipeline giant Enterprise Products Partners, and $1.8 million in copper miner Southern Copper — all disclosed in the firm's most recent SEC filing.
Gold Takes Center Stage as a Core Strategic Bet
McAlvany CEO David McAlvany spelled out the logic in a June 10 commentary. "Central banks are offloading Treasuries and buying gold," he wrote, adding that "hot money is still absent from the gold market, but institutional foundations are firming," according to McAlvany Financial. His firm's GLDM position reflects that view — gold is no longer a tactical trade but a core holding.
GLDM is the preferred vehicle for cost-conscious institutions, State Street Global Advisors notes. Its 0.10% expense ratio makes it a cheaper alternative to traditional gold ETFs. Sumitomo Mitsui Trust Group remains the trust's largest institutional holder with $1.72 billion in shares, according to MarketBeat.
Analyst Upgrades and Downgrades Split on Franco-Nevada
McAlvany's $4.65 million Franco-Nevada position landed amid a flurry of analyst moves. TD Cowen upgraded the stock from "Hold" to "Buy" on May 20, trimming its price target only slightly from $292 to $291, according to MarketBeat. HC Wainwright kept its "Buy" rating with a $305 target, and Scotiabank boosted its own target to $290.
Not everyone is fully on board. On June 8, Weiss Ratings nudged Franco-Nevada down from a "Buy (B)" to a "Buy (B-)," signaling mild caution on near-term price momentum. Still, Zacks analysts project a 30.99% upside for the stock, pointing to strong earnings agreement among analysts as the key driver.
Goldman and JPMorgan Pile Into OR Royalties the Same Quarter
McAlvany was not alone in chasing royalty-model gold companies. In the first quarter, Goldman Sachs grew its OR Royalties stake by 152.4%, reaching 1,256,583 shares worth about $26.54 million, according to MarketBeat. JPMorgan Chase raised its position by 58.3% to 205,176 shares, worth roughly $5.28 million. The royalty model — which earns a cut of mine revenue without bearing operating costs — is attracting institutions seeking inflation protection with lower risk.
Royal Bank of Canada reiterated an "Outperform" rating on OR Royalties and set a $56 price target. That is a striking call: OR shares were trading near $34, and the median analyst target sits around $29.50, according to Ticker Nerd. On May 6, OR reported record first-quarter earnings with EPS of C$0.56 and revenue of C$142.97 million, providing fundamental support for the bullish bets.
Southern Copper Insider Sells While Institutions Keep Buying
McAlvany's new Southern Copper stake of roughly $1.8 million arrived just as insider selling picked up. Director Luis Miguel Palomino Bonilla sold 200 shares on May 21 at an average of $177.82 per share, totaling $35,564, according to MarketBeat. Over three months, he sold 404 shares worth about $74,108 in total — cutting his stake by nearly 10% to 1,807 shares.
GuruFocus labels Southern Copper "significantly overvalued," with a price-to-GF-Value ratio of 1.49. That may explain the steady insider exits. Yet Capital World Investors added 2.26 million shares — a 35% increase — in the same quarter, showing that large institutions are willing to look past valuation warnings to bet on copper demand tied to energy transition.
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