Our strategy invests in exchange-traded industrial commodities and related assets based on direct intelligence from the commodities supply chain and alternative data.
We invest in less-covered, but still liquid, commodities where we believe we have a distinct fundamental edge.
We source alpha from our proprietary relationships across the industrial commodities value chain. We also source alpha from alternative data sources.
We continuously seek to reduce volatility through active hedging and risk management.
The strength of our commodities expertise is rooted in the depth and rigor of our fundamental research. Our investment process is based on systematic research and analysis of the industrial commodities value chain. Our bottom-up analysis evaluates supply and demand balances, inventory trends, valuation, market participant composition, technical data and structural curve analysis. We evaluate the macro environment, the potential influence of event risk on specific commodity prices, on-the-ground due diligence and commodity-related market intelligence from our network of key industry/market contacts.
Why This Strategy Now?
Capex into industrial metals has been insignificant as global demand growth increases. Metal producers will need to double capital expenditure in the coming years to ensure there are enough resources available to meet demand coming from decarbonization and the global aim to reach net zero emissions by 2050.
The mining and metals sector will be at the center of decarbonization efforts and electrification of the economy as the world transitions from fossil fuels to wind and solar power generation, battery- and fuel-cell-based electric vehicles (EVs), and hydrogen production.
World demand for batteries to power electric vehicles (EVs) is expected to increase sharply in the coming years. According to Precedence Research, the global electric vehicle battery market size is expected to worth around US$ 559.87 billion by 2030 and growing at a CAGR of 32% from 2022 to 2030.
Investors typically lack commodities exposure, which can provide effective portfolio diversification when designed carefully.
We are commodity experts, recognized for our unique blend of experience in both physical commodities and commodity futures, particularly within the industrial metals and materials complex.
We have highly-specialized experience and extensive contact networks within the industrial metals and materials space. This allows us to understand this niche market more deeply than other fund managers.
Only a very limited number of asset management firms are doing what we are doing. We provide investors with a unique opportunity to participate in a relatively small and complex market that very few understand.
Unlike other industrial metals/materials fund managers, our experience is rooted in the physical world of trading. We fundamentally understand the underlying businesses themselves, not just the financials.
We’ve been ranked repeatedly as a Top Performer by BarclayHedge.
We have the knowledge and capabilities necessary to provide investors with an institutional-grade investment program designed to provide diversification, liquidity and superior returns.