Strategy
Investment Approach
- Focus on well-managed companies that own or develop natural resources and other basic commodities with attractive long-term supply-demand fundamentals.
- Invest in companies that operate “downstream” from these resources, e.g., refining, paper manufacturing, steel fabrication, and petrochemicals.
- The portfolio invests in resource companies on a global basis including international energy, forest products, mining, and commodities.
- Assessment of resource/commodity cycle, industry valuation, and company fundamentals is key.
- Broadly diversify holdings to manage portfolio risk profile relative to highly concentrated energy or gold strategies.
Portfolio Construction
- Typically 90-120 securities
- Positions typically less than 5%
- Fully invested; reserves typically less than 5%
Past performance does not predict future returns.
Risks
- Currency risk
- Sector concentration risk
- Small and mid-cap risk
- Capital risk
- Equity risk
- ESG and Sustainability risk
- Geographic concentration risk
- Hedging risk
- Investment portfolio risk
- Management risk
- Operational risk