Investment Process

The objective of Kopernik’s investment process is to establish risk-adjusted intrinsic values for a universe of global equities, and to take positions in certain shares trading at significant differentials (discounts to- or premiums over-) those values. Industry-tailored valuation metrics are needed to assess distinct industry characteristics and success drivers.

Analyst Driven

  • Conduct research with highly-skilled global industry experts
  • Thinking independently often leads to non-consensus holdings

Qualitative

  • Focus on sustainability (supply/demand, barriers to entry, management, etc.)
  • Allocate capital globally, benefitting from comparative advantages and specific country pricing anomalies

Quantitative

  • Apply industry-tailored valuation metrics
  • Use multiple metrics (P/E, P/B, P/CF, Liquidation Value, Scenario Analysis, etc.)
  • Position at differential to intrinsic value

Risk Adjusting

  • Require a discount appropriate for the level of uncertainty (management, financial, competitive issues, geopolitical, etc.)

Vetting

  • Portfolio team meets daily to vet ideas and holdings
  • Group input and iterative debate

Skilled Portfolio Construction

  • Portfolio Manager Acumen & Experience
  • Portfolio Diversification Guidelines