We believe the long-term entry point for investment in the metal & mineral resource sector is here
An asymmetric risk-reward opportunity
Investment in the metal & mineral resource sector can offer compelling returns on its own merit. However, the trends that are currently in place can make the opportunity we are presented with truly asymmetric.
Consider the vast quantities of metal & mineral resources needed to electrify the World and reduce global CO2 emissions. Or the potential influence of increased geopolitical uncertainty & resource nationalism. Raw materials can’t be conjured out of thin air, nor do they disappear overnight. As such, the consequences of ongoing monetary debasement could provide a strong tailwind for investment in the resource sector. Particularly at a time an increase in the scarcity of near-surface resources that can be affordably extracted is expected over the next decades.
We aim to maximize returns, responsibly
The metal & mineral products produced by the mining and recycling industry can be found all around you. They are of fundamental importance to the advancements in efficiency & quality of life made in the past, the things we do every day, and to achieve the aspirations we have for the future.
Our multi-strategy fund offers commodity-centric, risk-weighted exposure to public miners, royalty & streaming companies, vertically integrated producers, smelters, and metal & mineral recyclers. In addition, our Fund has the ability to hedge against macroeconomic and sector related headwinds via options.
Why choose The Mining Fund?
Strong Focus
Our thematic, risk-weighted portfolios are specifically designed to mitigate risk inherent to the metal and mineral resource sector, without limiting long-term upside potential.
Active & Nimble
Commodities don't all peak simultaneously. This allows the fund to strategically move investments between commodities as the market cycle unfolds, capitalizing on unique opportunities as they arise.
Hard Assets
Allocating capital to natural resource companies may offer a measure of protection against inflation, which is particularly advantageous in today's market conditions.
Liquidity
Compared to other alternative investment opportunities such as private equity, real estate, or direct investment in the mining industry, the Fund offers a relatively high degree of liquidity.
Downside protection
When headwinds are expected, the Fund can purchase put options to protect the portfolio. The Fund can also temporarily re-allocate a portion of its assets to government bonds or money market funds.
No Cure, No Pay
We believe success is maximized when incentives are aligned. Consequently, alongside traditional fee structures, we offer investors a purely performance based fee structure.
Our investment process
The Mining Fund combines bottom-up securities analysis & selection, with top-down investment and hedging based on market conditions. A schematic overview of our thematic, risk-weighted investment process is provided below.
First we use our proprietary Public Miner Database, which contains 1000's of metal & mineral resource companies listed on 40 stock exchanges in 30 countries, to develop portfolios of what we believe are high quality investments with exposure to a specific theme.
1. Identify Opportunities
2. Apply Exclusion Criteria
3. Risk-weighted Portfolios
4. Top-down Investment
5. Dynamic Hedging
6. Monitor and Exit
Whilst we're invested we closely monitor the individual businesses in the portfolio, as well as the general market and relevant developments. When we believe it is prudent to do so, we apply hedges to offer some portfolio protection. Until we exit. To retain focus, the Fund can invest in up to 5 themes at any one time. The Fund can also invest in up to 10 individual companies to be able to take advantage of opportunistic, special situation, or niche investment opportunities.