Soumya Eswaran
3 min read
In This Article:
Rewey Asset Management, an investment management company, released its “RAM Smid Composite” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The composite declined 6.97% in Q1 2025, trailing a 5.83% decline for the benchmark Russell 2500 Value Total Return Index. Larger-cap stocks outperformed smaller ones in 1Q25, with the Russell 3000 TR value up 1.64% and the Russell 2000 TR value down 7.74%, while the RAM Smid composite is biased towards smaller-cap stocks. The significant market theme in Q1 2025 was the uncertainty surrounding the potential negative economic effects of Trump's tariffs. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Rewey Asset Management highlighted stocks such as Agnico Eagle Mines Limited (NYSE:AEM). Agnico Eagle Mines Limited (NYSE:AEM) is a mining company that engages in the production and exploration of gold. The one-month return of Agnico Eagle Mines Limited (NYSE:AEM) was -4.21%, and its shares gained 70.22% of their value over the last 52 weeks. On May 22, 2025, Agnico Eagle Mines Limited (NYSE:AEM) stock closed at $114.59 per share with a market capitalization of $57.92 billion.
Rewey Asset Management stated the following regarding Agnico Eagle Mines Limited (NYSE:AEM) in its Q1 2025 investor letter:
"Eagle Mines Limited (NYSE:AEM) was our strongest percentage gainer in the quarter, although we sold the position to zero, half in late January and the balance in mid-March. AEM is a good example of our philosophy of not selling a stock just because its market cap grows out of our Smid range, as it ended 1Q25 at a $53 bil. market cap. Initially, we acquired Kirkland Lake, which was subsequently acquired by AEM for stock. We held the position, and the combined entity posted strong returns for RAM. We sold our position as it rose to our price target on strong gold pricing, and on our view that the medium-term production plateau forecast by the company would likely leave the company as a just a pure play on gold prices. We continue to own Wesdome Gold Mines (WDOFF) which is forecast to post strong production growth and cost reductions and is located in the same Abitibi gold belt sweet spot as AEM’s core operations."
A macro view of a gold mine, with miners hard at work in the foreground.
Agnico Eagle Mines Limited (NYSE:AEM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Agnico Eagle Mines Limited (NYSE:AEM) at the end of the fourth quarter compared to 54 in the third quarter. While we acknowledge the potential of Agnico Eagle Mines Limited (NYSE:AEM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
