Our investment strategy aligns management objectives with those of our investors to maximize success. Our Partners provide equity capital and support and counsel as active board members. We invest in minority positions in natural resource companies with market capitalization of $1 million to $500 million.
We focus on public and private companies in America and Canada, and support management's efforts to grow their natural resource business. Our particular focus is small Canadian public companies, and we seek to acquire significant equity positions in companies with natural resources that are close to the production stage of development and where the resources are located in Canada or America. We also seek to identify assets that would be suitable to spin off from public companies which require equity to develop cash flowing production from the resource.
Our investments in private companies are made coincident with
transactions designed to assist access to public markets by the reverse
merger process. This process provides fresh capital to develop natural
resource assets, increased liquidity for the shareholders, and the
establishment of a stock currency to facilitate mergers and
Through our Partners extensive operating, venture capital,and investing experience,we have access to a network of investors, hedge funds, venture capitalists,private equity, investment banks, and professional advisors that enable us to create solutions to the growth needs of natural resource businesses.
The Partners believe that there is a long term bull
market in commodities driven by the rapid economic growth of emerging
markets like China and India, and by the monetary expansion and inflationary policies pursued by governments and central banks world wide. In the year ending 2010, the Thompson Reuters CRB index of 19 raw materials increased 15%, with silver and cotton jumping over 80%. This compares with the MSCI All Country World Index of stocks rising 13% and global bonds rising less than 5% (based on Bank of America Global Broad Market Index). The Partners believe that this is indicative of a trend that will accelerate, making investing in natural resource companies attractive.