UPDATE 1-Funds bail on gold miners in Q3 as bullion prices tumble

Mon Nov 16, 2015 5:56pm EST
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By Marcy Nicholson

NEW YORK Nov 16 (Reuters) - Soros Fund Management LLC sold its stakes in two gold miners while hedge fund Paulson & Co cut its stake in another as bullion prices fell to 5-1/2-year lows, filings with the U.S. Securities and Exchange Commission showed on Monday.

Soros eliminated its stakes in the Market Vectors Gold Miners exchange-traded fund (ETF) and Barrick Gold Corp in the third quarter of 2015, which were valued at a total of $33.6 million at the end of the prior quarter, 13F-HR filings showed.

Paulson & Co reduced its stake in AngloGold Ashanti Ltd by 1 million shares during the quarter while CI Investments Inc , an investment manager of Toronto-based CI Financial Corp, raised its stake in SPDR Gold Trust to 601,479 shares by the end of September.

CI Financial's stake was up 5 percent from the end of June, though its value fell to $64.3 million by the end of September from $64.6 million at the end of the second quarter.

"I see selling of gold miners and buying of the actual physical gold," Mike McGlone, director of research for ETF Securities in New York.

Caxton Corp cut its stake in Market Vectors Gold Miner ETF by two-thirds to 31,733 shares worth $436,000 by the end of the third quarter.

In July, the price of spot gold tumbled 6.6 percent, their weakest monthly performance in more than two years after a steep selloff in Shanghai and New York. Expectations for the U.S. Federal Reserve to raise interest rates as early as September also pressured prices.

The Fed did not raise rates then, but many economists and investors now expect a hike in December, pushing gold prices to a six-year low at $1,074.26 an ounce last week.

New York-based Paulson & Co, led by longtime gold bull John Paulson, left stakes unchanged in miners IAMGOLD Corp and NovaGold Resources, as well as the gold-backed ETF SPDR Gold Trust. (Reporting by Marcy Nicholson; Editing by Meredith Mazzilli and Ken Wills)