Portfolio Manager's Journal

Midas Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income through investments primarily in precious metals mining and other natural resource companies, as well as gold, silver, and platinum bullion. The Fund’s holding of Fresnillo plc., a gold and silver producer located in Mexico, performed well in the last month. On the other hand, shares of OceanaGold Corp., an Australian
mining company with operations in the Philippines, New Zealand, and the United States, have underperformed in the last month. Using a disciplined approach, the Fund seeks to emphasize gold and other natural resource companies offering financial strength, expanding production profiles, strong free cash flow, and promising exploration potential. The Fund currently is invested in a global portfolio of primarily large and medium gold and diversified mining companies, precious metals royalty companies, and ETFs holding gold and silver bullion.

Midas Magic seeks capital appreciation. Relative to the S&P 500, the Fund’s portfolio currently is more weighted in cyclical companies, such as financial services, and is underweight in economically sensitive and defensive industries. The Fund generally focuses on companies that appear to have strong operations showing superior returns on equity and assets with reasonable valuations. The Fund’s position in Cabot Oil & Gas Corporation, a company engaged in the development, exploitation, and exploration of oil and gas properties in the United States, performed well in the last month. On the other hand, the Fund’s holding Essent Group Ltd., a holding company that through its subsidiaries offers mortgage insurance, reinsurance, and risk management products, hindered the Fund’s performance in the past month. Each of Mastercard Inc. Class A,
Alphabet Inc. Class A, and Berkshire Hathaway Inc. Class B currently comprise more than 10% of the Fund’s net assets.