The Global Natural Resources Equity strategy targets a broad commodity universe and seeks to actively allocate to the most attractive opportunities in our space based on a number of specific criteria. Our experience and process allow us to thoroughly evaluate commodity fundamentals. We typically allocate among equities with positive leverage to commodities. However, we will also consider allocating to those with more neutral leverage (more levered volume than price) and at times, those with negative leverage (commodity consumers). As a result, we believe we can effectively manage through an entire cycle, aiming to generate peer-competitive Sharpe ratio performance regardless of market conditions.
The strategy seeks to provide hard assets exposure and maximize the Sharpe ratio for optimal risk/reward exposure.
We believe that successful natural resources investing is best achieved through a process driven by “commodities first” research across an expansive opportunity set. Evaluation of such a universe requires deep knowledge of each commodity, and we leverage our analysts’ expertise, optimizing information within a framework of oversight and risk management.
- Focused Research: Research coverage is aligned with each analyst’s specific area of commodity expertise.
- Expanded Universe: A broader investment universe provides increased opportunity and flexibility.
- Selection Driven: Stock selections are conducted by those closest to the information.
- Managed Risk: Risk is managed both at the overall portfolio level, as well as the company level. Our multi-tiered risk management process is designed to identify specific risk factors through standardized and proprietary risk analysis, enabling us to focus on more customized risk factors and sources.
Please note that all investment strategies involve risk.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.