Kopernik Global Investors views the Q2 2026 market correction as a strategic entry point for hard assets, highlighting upside potential in Seabridge Gold and its spin-off, Valor Gold, despite recent fund underperformance.
Kopernik highlighted Seabridge Gold's spin-off of Courageous Lake and sees upside to intrinsic value.
Gold prices fell 16% in Q2, but Kopernik views the correction as an opportunity to add to hard assets.
Valor Gold received the Courageous Lake gold project from Seabridge and is seen as undervalued.
Silver prices fell 21% in Q2, but the fund sees value in hard assets.
Kopernik Global All-Cap Fund reported a 6.60% decline in Q2 2026, trailing the MSCI ACWI's 14.93% gain as momentum-driven growth stocks outperformed value-oriented holdings. The firm attributed the underperformance to sharp drops in precious metals, with gold and silver falling 16% and 21% respectively, alongside detractions from materials and energy sectors.
The fund's value-focused approach lagged behind a momentum-driven market that heavily favored growth-oriented equities, particularly in the semiconductor sector, while precious metals and energy holdings detracted from performance.