Paragon Funds Management has seen substantial gains thanks to its long-short strategy, which capitalized on the rally in precious metals. The fund achieved a 36 per cent return in September, helping it top Morningstar’s list of Australia’s best stock-pickers for the 2025 financial year. Paragon achieved the rare feat of doubling investors’ money. A strong start to the new year lifted its rolling 12-month return to 141.3 per cent through the end of September. Paragon Funds Management is a Melbourne-based firm that focuses on investment strategies. The firm manages funds, aiming to provide strong returns for its investors.
The firm’s performance was largely driven by a surge in gold prices, which reached a record $US4059 an ounce amid concerns about stock valuations and US debt. Chief Investment Officer John Deniz believes the market underappreciates the opportunity in mining stocks. Some of Paragon’s top performers for the month included ASX-listed gold miners St Barbara, which rallied 53 per cent, Meeka Metals 64 per cent, and Kingsgate 34 per cent. The fund also benefited from US-listed Equinox Gold’s 28 per cent gain and SSR Mining’s 26 per cent advance.
Paragon also benefited from the surge in silver prices, which broke through $US50 an ounce amid demand for solar panels and wind turbines. Positions in ASX-listed silver miner Unico, which rocketed 84 per cent last month, and Canada’s Argenta Silver, up 43 per cent, contributed to the fund’s success. This stellar performance has seen Paragon’s funds under management increase from $44.3 million at the start of the year to $113.9 million.
Other commodity-focused fund managers have also seen impressive returns. Perennial Partners’ Strategic Natural Resources Fund posted its best month since commodity markets rebounded from the pandemic, returning 16.1 per cent in September. Argonaut’s Natural Resources Fund also rallied 16.1 per cent last month. However, Argonaut has since reduced its exposure to gold stocks and increased its cash level, citing caution after the rally.
