A unique fund

Exploration companies with a significant commodity discovery are usually taken over within a couple of years. We call this type of investment “Discovery Investing”. By adopting this strategy, we have had an average of one takeover of a company in our portfolio every quarter. Such takeovers are usually done by a big mining company looking to replenish its reserves.

Since the inception of the fund, this has happened more than 75 times. You can find the full list here.

We invest mainly in phase 1 (discovery) and during the start-up of production. Furthermore we also invest in ETFs and so called Royalty & Streaming companies. More information can be found on our Portfolio page. Or read more about the importance of investing in commodities.

The commodities sector is extremely capital intensive and cyclical. In addition, it relies on a fragile pipeline. This runs from searching for new reserves, to obtaining the permits, capital and knowledge to mine the metals. This pipeline has come under further pressure in recent years due to globally implemented Environmental, Social & Governance (ESG) regulations. This has allowed the sector to attract less capital, resulting in a historic undervaluation of the entire sector. And while fluctuations can lead to temporary turmoil in the markets, it is important to maintain a helicopter view. This allows you as an investor to determine where you are within the bigger picture. See the chart to the right for the (under)valuation of commodities (Goldman Sachs Commodity Index) relative to the U.S. stock market (S&P 500).

In our blog, Rising Gold Prices versus Struggling Gold Mining Stocks, you can read about the divergence between rising gold prices and struggling gold mining stocks' valuations.

We communicate with our participants through our monthly reports, newsletters, and webinars. The fund and Willem Middelkoop can be followed online via the social media channels below.

Commodity Discovery Fund: LinkedIn, Twitter, YouTube

Willem Middelkoop: LinkedIn, Twitter