Strategy Rationale

“It was the best of times, it was the worst of times” from Charles Dickens succinctly sums up the resource investment experience in the past two decades. The secular commodity bull market driven by China’s ascension created a secular bull market for those lucky enough to be invested in resource equities during the first decade of the 2000s while the subsequent commodity bust wiped out most, if not all, of those gains.

Bromma's investment strategy is unique compared to traditional resource funds in that it is designed to provide upside capture when commodity prices are bullish while offering downside protection and modest return generation through short-selling when commodity prices are bearish. Traditional resource funds tend to be long-only or leveraged-long and do not offer downside protection during commodity bear markets.