Over the last couple of years, I have focused the majority of my research efforts on the industrial and technology metals mining sector. This lead to me launching the Industrial Minefinder™ subscription service through Seeking Alpha and developing the Industrial Minefinder™ Junior Index (IMJI™). Building upon this, I recently decided to launch a separately managed account strategy dedicated exclusively to this sector. In this True Vine Letter, I briefly review the broader opportunity I see and introduce this new service.
Opportunity
Global demand for industrial metals, particularly in Asia, is robust and there are several emerging catalysts that stand to reinforce this trend in the years and decades to come. The primary drivers include:
structural supply deficits in all three of the primary base metals—copper, nickel, and zinc
rapid economic growth in India
China's One Belt, One Road initiative
a renewed focus on critical metals and infrastructure development in the U.S.A.
a transition to electric vehicles that has created a new demand driver for a host of industrial metals
growth in electrified transportation, renewable energy (solar & wind), and energy storage has metals, such as lithium and uranium, poised to take “energy” market share away from coal, oil, and natural gas.
The overall investment case for industrial and technology metals is solid.
To take advantage of this trend, True Vine Investments is now offering the following specialized separately managed account strategy:
Industrial & Technology Metals Miners Strategy
The Industrial Miners Portfolio invests across the spectrum of industrial metals miners—juniors, intermediates, and majors—where I see the most potential for risk-adjusted outperformance.
Advantages
There are several distinct advantages to investing in this Strategy versus an exchange traded fund or a mutual fund, assuming there is a comparable one even available. These include:
Flexibility
Client cash is invested only when compelling values are available. If the miners, as a whole, are overvalued, the portfolio is free to hold substantial amounts of cash or other short term securities.
Customization
Unlike mutual funds, each client has their own portfolio that is not effected by investment flows from other investors. Portfolios never have to liquidate undervalued companies or purchase more shares of overvalued companies due to market volatility and swings in investor sentiment.
Individual portfolios allow for custom harvesting of capital gains and losses. The sale of securities can be structured to ensure that clients receive the maximum tax benefits for their unique situations.
Communication
Clients always have direct access to their portfolio manager.
Conclusion
Consider complementing your overall investment portfolio with an account dedicated exclusively to industrial and technology metals miners.
For information on who is eligible for these portfolios and the fees associated with them, please visit the dedicated page on this site.
If you have further questions please comment below or contact me directly.
Joshua Hall, ChFC
Disclosure
The True Vine Letter is a publication of True Vine Investments, the investment advisory business of Joshua S. Hall, ChFC, and a Registered Investment Advisor in the U.S.A. The information presented is for educational purposes only and should not be regarded as specific financial or investment advice nor a recommendation to buy or sell securities or other investments. It does not have regard to the investment objectives, financial situation, and the particular needs of any person who may read this Letter. In no way should it be construed as personalized investment advice. True Vine Investments will not be held responsible for the independent financial or investment actions taken by readers. All data presented by the author is regarded as factual, however, its accuracy is not guaranteed. Investors are encouraged to conduct their own comprehensive evaluation of financial strategies or specific investments and consult a professional before making any decisions. Positive comments made regarding this Letter should not be construed by readers to be an endorsement of Joshua Hall’s abilities to act as an investment advisor.