This was a strategy that we had dismissed primarily because it appeared to be too niche. Within this there is a perception of greater risk. This was therefore our first face to face meeting with the team and this has painted a slightly different picture as to what this is looking to achieve and why perhaps investors might wish to consider it.
In terms of the managers, they have a background in mining and geology before coming across into fund management. They have worked together at different stages of their careers, and this is an area they clearly have an immense amount of knowledge about, including a wide list of contacts.
So the management is one thing to take notice on.
The second is understand the strategy. This is not a single metal strategy. This invests across precious (silver and gold), industrial and speciality metals. Each area has a cycle whether it is trough, mid or late cycle and they capture this within the strategy by actively moving between different parts of the cycle. As an example, the strategy is currently more defensive with around 50% in precious metals….read more