Donald Smith & Co's Strategic Moves: Equinox Gold Corp Sees a -2.9% Impact

This article first appeared on GuruFocus.

Analyzing the Fourth Quarter 2025 13F Filing

Donald Smith & Co (Trades, Portfolio) recently submitted the 13F filing for the fourth quarter of 2025, providing insights into its investment moves during this period. Donald G. Smith was the Chief Investment Officer of Donald Smith & Co (Trades, Portfolio) from its founding in 1980 until he passed away in 2019. He began his career as an analyst with Capital Research Company and subsequently worked at Capital Guardian Trust Co. In 1980, he became the CIO of Home Insurance Company and the President of Home Portfolio Advisors, Inc., which he bought and re-named to Donald Smith & Co (Trades, Portfolio). Smith was awarded a B.S. in Finance and Accounting by the University of Illinois, an MBA by Harvard University, and a J.D. from UCLA Law School and was admitted to the Bar Association of California. He once volunteered for Ben Graham at UCLA to conduct a study on a low P/E strategy. Donald Smith is a deep-value manager employing a strict bottom-up approach. He invests in stocks of out-of-favor companies selling at discounts to tangible book value. He looks for companies in the bottom decile of price-to-tangible book ratios and a positive outlook for earnings potential over the next 2-4 years.

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Summary of New Buy

Donald Smith & Co (Trades, Portfolio) added a total of 2 stocks, among them:

The most significant addition was West Fraser Timber Co. Ltd (NYSE:WFG), with 1,489,342 shares, accounting for 1.7% of the portfolio and a total value of $91,013,690. The second largest addition to the portfolio was Waterstone Financial Inc (NASDAQ:WSBF), consisting of 127,770 shares, representing approximately 0.04% of the portfolio, with a total value of $2,114,590.

Key Position Increases

Donald Smith & Co (Trades, Portfolio) also increased stakes in a total of 28 stocks, among them:

The most notable increase was Harley-Davidson Inc (NYSE:HOG), with an additional 2,095,477 shares, bringing the total to 8,899,204 shares. This adjustment represents a significant 30.8% increase in share count, a 0.81% impact on the current portfolio, with a total value of $182,344,690. The second largest increase was Centerra Gold Inc (NYSE:CGAU), with an additional 2,535,492 shares, bringing the total to 14,158,116. This adjustment represents a significant 21.82% increase in share count, with a total value of $203,452,130.

Summary of Sold Out

Donald Smith & Co (Trades, Portfolio) completely exited 2 of the holdings in the fourth quarter of 2025, as detailed below:

Story Continues

Guild Holdings Co (NYSE:GHLD): Donald Smith & Co (Trades, Portfolio) sold all 158,988 shares, resulting in a -0.06% impact on the portfolio. Micron Technology Inc (NASDAQ:MU): Donald Smith & Co (Trades, Portfolio) liquidated all 2,488 shares, causing a -0.01% impact on the portfolio.

Key Position Reduces

Donald Smith & Co (Trades, Portfolio) also reduced positions in 25 stocks. The most significant changes include:

Reduced Equinox Gold Corp (EQX) by 12,981,833 shares, resulting in a -64.81% decrease in shares and a -2.9% impact on the portfolio. The stock traded at an average price of $12.65 during the quarter and has returned 23.30% over the past 3 months and 15.40% year-to-date. Reduced Hudbay Minerals Inc (NYSE:HBM) by 5,725,208 shares, resulting in a -99.38% reduction in shares and a -1.73% impact on the portfolio. The stock traded at an average price of $16.94 during the quarter and has returned 51.03% over the past 3 months and 29.27% year-to-date.

Portfolio Overview

At the fourth quarter of 2025, Donald Smith & Co (Trades, Portfolio)'s portfolio included 59 stocks, with top holdings including 8.3% in AerCap Holdings NV (NYSE:AER), 6.06% in Iamgold Corp (NYSE:IAG), 4.95% in Eldorado Gold Corp (NYSE:EGO), 4.02% in Genworth Financial Inc (NYSE:GNW), and 3.9% in Jackson Financial Inc (NYSE:JXN).Donald Smith & Co's Strategic Moves: Equinox Gold Corp Sees a -2.9% Impact

The holdings are mainly concentrated in 7 of the 11 industries: Financial Services, Basic Materials, Industrials, Consumer Cyclical, Real Estate, Energy, and Utilities.Donald Smith & Co's Strategic Moves: Equinox Gold Corp Sees a -2.9% Impact

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