(JAG): JAG is a Canadian company engaged in the exploration, development and extraction of gold in Minas Gerais, Brazil. This is the largest position by far of mega funds in the small-cap gold mining group, both in absolute and relative terms, as they added a net $8 million in Q3 to their $128 million prior quarter position, and together they control an outsized 27.6% of the outstanding shares of the company versus their 7.5% weighting in the group. The top mega fund buyer in Q3 was Wells Fargo & Co. ($6 million), and the top holders were Capital Research Global Investors ($49 million) and Well Fargo & Co. ($36 million). JAG trades at current 27 P/E and 1.8 P/B compared to averages of 24.9 and 2.2 respectively for small-cap gold miners, while earnings are projected to double from 26c in 2011 to 54c in 2012.
The following are select small-cap gold miners that these mega fund managers are most bearish about (see Table):