Loser: Franklin Gold and Precious Metals Fund
It’s no secret that gold has been in free fall. With the Federal Reserve appearing to get more hawkish, the prospects for inflation look slim, and this appears to be taking down gold. Prices have fallen nearly 23% in the second quarter alone.
As one would expect, funds focused on gold and gold miners have gotten absolutely smashed this year. The Franklin Gold and Precious Metals Fund (FKRCX) — which has lost more than half its value since Jan. 1, 2013 — has been no exception.
Portfolio manager Steve Land has a knack for early-stage minors that trade on smaller exchanges, and these have been among some of the hardest-hit companies in the market. Some of FKRCX’s holdings include Newcrest Mining (NCM), Goldcorp (GG) and Randgold Resources (GOLD), which have all lost between 35% and 55% year-to-date.
Franklin Gold and Precious Metals’ A shares charge 0.96% in expenses and are subject to a max initial sales charge of 5.75%.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.