[miningmx.com] – THERE was a disconnect between price and value in the mining market currently with the sector offering strong long-term prospects, said Bloomberg News citing the views of Karl Leinberger, chief investment officer for Coronation Asset Management.
The fund manager bought Anglo American, Exxaro Resources and some of South Africa’s platinum mining firms earlier this year. The Coronation Resources Fund has declined 35.9% this year, according to data compiled daily by FundsData Online.
“You look like an idiot and then, in two or three years’ time, the cycle turns and you look like a hero,” Leinberger told Bloomberg News in an article republished on BDLive. “We’re a long-term manager. This kind of underperformance isn’t meaningful if you look at our 22-year track record. Our performance over 10 and five years is excellent still.”
“Resources are highly stressed. Seven years ago, we were very negative on resources and thought they were overvalued. Today we think they’re undervalued, but don’t expect a turnaround any time soon.”
No near-term catalyst would boost demand for commodities and drive the prices of resource shares higher, Mr Leinberger said. “There are big disconnects between price and value at the moment. We think we’ll deliver compelling results in the years ahead.”
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