Hunting for Value in Mining Stocks Amid Soaring Metals Prices | Freddy Brick | Muddy Waters Capital
Other People's Money with Max WietheShow Notes
Precious metal and base metal prices have soared as have many mining stocks, but despite this, Freddy Brick, partner at Muddy Waters Capital says that the industry feels closer to left for dead than euphoric. He explains why that setup and the consistency of the mispricing in the sector brought them to launch a fund with the help of mining expert Darren McLean allowing them to take concentrated investments in the assets they think the market is overlooking while running lower net exposure. He also discusses how they think about hedging in the sector, why they take a bottom-up approach to portfolio construction, and how they approach short and long activism in the sector.
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Timestamps:
00:00 Intro
01:28 Approach to Portfolio Construction
07:56 Fraud Report Origin
09:35 Block Models Explained
15:27 Why Juniors Are Distressed
21:19 Finding Mispriced Projects
25:12 Venture Like Investing
28:25 Promoters and Capital Raising
33:43 Sentiment and Cycles
38:28 M&A Wave Ahead
43:27 Trading Vol and Hedging
46:57 Long Activism Approach
50:23 Scaling the Strategy
55:10 When Alpha Shows Up
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This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
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