Commodities Featured Article Iron ore price

US fund throws money into Fortescue

Thursday, 5 February 2015

From the AFR:

US-based fund management behemoth The Capital Group emerged on Thursday with a 5 per cent stake in struggling iron ore miner Fortescue Metals Group.

Capital Group, which has about $US1.25 trillion ($1.61 trillion) in funds under management, is a long-term fund. Its move to take a substantial holding of 5.02 per cent in Fortescue could be a bet on an iron ore price recovery.

Mental note: short The Capital Group. Or, perhaps they know something that we do not?

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.