Australian boutique fund manager Tribeca Investment Partners (Tribeca) has opened its initial public offer (IPO) for a new listed investment company, Tribeca Global Natural Resources Ltd (LIC). The company seeks to raise up to AUD250 million and aims to deliver investors a compound annual return in excess of 15 per cent.
The LIC intends to take advantage of the volatility in the natural resources sector by adopting a long/short strategy, investing along the value chain and through capital structures – equities, commodities and credit – to take advantage of relative value and valuation mis-pricing.
“The natural resources sector is inherently volatile. Consequently, we believe there is an opportunity to deliver positive absolute returns over the long term using our active and global strategy, regardless of macro conditions,” says Ben Cleary, Portfolio Manager of the Company.
“Central to our investment thesis is that the cyclical nature of the demand in natural resources means investors must be active. The high degree of volatility in the natural resources sector means some assets will be mis-priced, which creates investment opportunities for investors who have the research capability and deep industry knowledge.”
The Company’s investment strategy will be similar to Tribeca’s existing Global Natural Resources Fund, which has delivered a cumulative net return of 233.75 per cent since inception at an average compound annual return of 57.21 per cent after fees since it was established in October 2015.
The LIC will invest across the natural resources value chain ranging from exploration and feasibility operations, mining projects, engineering and design businesses, transport and logistics, end-customers and service providers.
“We believe the ability and flexibility to invest both long and short, and across the capital structure of companies, while also being able to use direct commodity exposures to hedge our portfolio has been invaluable to deliver returns in both good and bad markets for the natural resources sector,” says Cleary.
The Company seeks to generate a compound annual return in excess of 15 per cent after fees and expenses whilst preserving capital over the long term (five years-plus).
While the LIC has a global mandate, its initial focus will be on investments in North America, Europe and Asia-Pacific, including Australia.
It is proposed that the Company will list on the Australian Securities Exchange (ASX) under the code “TGF”.