This 20 year old value fund likes gold miners despite the falling gold price

Arbiter Partners was up 1.2% net for the first quarter following a steep decline in January and a sizable gain in February. In his first-quarter letter to investors, which was reviewed by ValueWalk, Paul Isaac of Arbiter said that since February, the fund had maintained a somewhat lower gross exposure and a moderately higher net long amid the frothy financial markets and unprecedented monetary and fiscal policies.

Q1 2021 hedge fund letters, conferences and more

He believes these policies will continue for at least the next 12 to 18 months. Isaac noted that the U.S. equity market has especially become very expensive compared to historical levels. Still, he believes Arbiter’s portfolio remains inexpensive on an absolute basis and extremely inexpensive on a relative basis.

Arbiter Partners is a value hedge fund founded in 2001 by Paul Isaac.