The Kopernik Global Real Asset strategy may be offered by Kopernik in various investment vehicles, including separate accounts and privately offered funds. More information is available upon request.
Kopernik takes a value approach to investing, seeking to identify forward-looking risk-adjusted intrinsic values for businesses in relation to their public market valuations. Within the context of overall opportunities, risks and portfolio diversification, action is taken when there are significant discounts to those risk-adjusted intrinsic values. Kopernik believes profit opportunities are more accurately and frequently identified and manifest through a global purview.
The Kopernik Global Real Asset strategy intends to invest in Real Asset Companies located throughout the world, including emerging and frontier markets, which the Investment Manager believes are trading at a significant discount to risk-adjusted intrinsic value. Real Asset Companies include: (i) companies in the energy, industrials, materials and utilities sectors; (ii) companies in the food products industry; (iii) companies, if not in one of these sectors or industries, that (a) derive at least 50% of their revenues or profits from owning, producing, refining, processing, transporting or marketing natural resources or (b) have at least 50% of the fair market value of their assets invested in natural resources; or (iv) pooled investment vehicles that primarily invest in the foregoing companies or that are otherwise designed primarily to provide investment exposure to natural resources. The strategy plans to typically invest in equity securities but may invest in any level of the capital structure that Kopernik perceives to offer the best potential risk-adjusted returns.
Global Real Asset Strategy Guideline Maximums (at purchase):
- Issuer weight 5%
- Industry weights 35%
- Sector weights 50%
- Country weights 35%
- Emerging Markets 55%
Kopernik defines Emerging Markets to include all emerging and frontier markets and countries that may not be classified as developed by MSCI.