Introduction
Here you will find a list of notable themes that we have selected in the past. Click through for a summary of each one.
We usually move a theme from current to previous if our reviews indicate that the expected potential has been fulfilled (some times sooner than expected, given investor behaviour!) Or, the environment and drivers for the theme have changed. In the latter cases we prefer to move to the sidelines.
Previous themes are always under watch and any one may come back at any time as factors change – keep any eye out for current themes and our Quarterly theme updates.
We initiated this theme in Q1, 2021 on the back of a positive demand outlook and underinvestment in production.
By the end of 2023, the spot price of uranium increased by over 300%, and we paused this theme in consideration of the rise having potentially outpaced fundamentals and with a view to switching to a more equities-based approach to take advantage of the uranium fuel new contracting cycle and the supply and demand dynamics indicating a persistent shortfall in long-term supply.
Copper was initiated in Q3 2022 when the copper price was c. $3.5/lb as it is expected to be one of the main beneficiaries in the coming long-term transition to a world powered by electricity.
However, with broad equity markets at all time highs and increasing recessionary concerns, we no longer think it is the right time to enter positions for this economically-sensitive theme.
We identified a long-term underpinning trend towards corporate sustainability and ‘net zero’, with Carbon Credits as an opportunity with no company-specific risk.
Following the large ESG push during the recent pandemic the political focus appears to have drifted away from ‘carbon neutrality’ in the short term.
Along with increasing recessionary concerns, which, if played out, would likely see a reduction in industrial demand for energy and so commercial buying pressure for carbon credits, this economically-sensitive theme has been paused.