Kings Road Capital is focused on junior natural resource companies. Although composition of the portfolio changes over time, an investor should be expecting an 80% exposure to precious metal equities and 20% to base metal equities. These equities cover a wide range from exploration, development, production and royalty companies.
The manager expects to provide absolute returns to the investors of the Fund. Having said that, commodities are volatile and cyclical. Hence, the equities that the Fund invests in will have times of negative headwinds at times. Kings Road Capital believes that through the project selection process and trading strategies employed, such headwinds can be negated in medium to long term.
Since the Fund aspires to be the best diversified gold equity exposure alternative for investors, we also assess our performance in relative terms. Below is the graph displaying our 5-year track record in comparison to: i) GDXJ, VanEck Vectors Junior Gold Miner ETF, ii) TSXV, TSX Venture exchange in Canada iii) XBT, the iShares S&P/TSX Global Base Metals Index ETF iv) Gold and v) the S&P 500.
Although past performance is never a guarantee for future returns, we at Kings Road Capital, regard our in-depth sector knowledge along with our trading approach as a competititive edge giving us a strong likelihood to continue creating alpha (i.e. excess returns vs. benchmarks) in the long run.