Our Mining Investment Philosophy

Umbono has a unique approach to mining investing. Unlike ETFs and most mining funds that track indices of the largest mining companies representing mainly iron ore, copper, steel and gold exposure, Umbono identifies sub-sector metals that are at cycle lows based on inherent supply and demand factors. We select stocks that present “deep value” opportunities for these preferred metals, including smaller companies. We augment this with a hedge strategy to exploit downside opportunities in what we consider overvalued metals and companies, taking short positions on overvalued assets at cycle peaks

Combined with our 20 year old business and deep mining experience, our investment team has significant track record of success in natural resources investing. Our broader team footprint in the US, Canada, UK, South Africa and Australia provides “grassroots” insight into major mining jurisdictions and assets

We believe that metals and mining assets have ”significant room to run” being at levels close to their Financial Crisis lows, and at multi-decade lows relative to the S&P 500. Commodities, particularly metals and mining assets, typically outperform other major asset classes during the current stage of the financial cycle that we find ourselves in, and typically also provide excellent diversification against major asset classes