Acorn Capital NextGen Resources Fund
The NextGen Resources Fund provides investors with exposure to a range of commodities such as lithium, the rare earth elements, graphite, nickel, gold, copper, oil, coking coal and gas. (For Wholesale Investors Only)
A diverse portfolio of small and emerging companies focused on commodities being positively impacted by global disruptions, such as the clean-energy transition. The Fund is managed by ex-geologists with the technical and financial skills essential for investing in this universe.
Key benefits
The fund will hold up to 40 companies, ranging from explorers to developers and producers with a range of commodities, including rare earths, lithium, graphite, oil and gas.
Investors in the Acorn Capital NextGen Resources Fund receive:
- Diversified Australian Resource and Energy Exposure
Acorn Capital will construct a portfolio of Resources and Energy companies across a mix of explorers, developers, and producers. Investing outside the top 100 listed ASX stocks and in unlisted opportunities the Fund will provide diversification away from bulk commodities such as iron ore. - Expertise and access to an experienced team
Acorn Capital is the pioneer of microcap and emerging growth investing. It has maintained a specialist Resources and Energy investment team since its inception in 2002. Investors in the Fund will benefit from 20 years of institutional memory and sector learnings. - Strong fee alignment and capacity management
A performance fee will only be paid if the fund’s returns are above the benchmark and 20%. The fund will hard close at $100m, optimising returns for investors.
Initial desktop reviews use Acorn’s proprietary database to screen more than 1,300 companies, which collectively hold more than 6,700 underlying resources and energy projects. These results will be used to identify an initial group of attractive investment opportunities according to commodity type and stage of development (i.e., production, development or exploration).
The qualitative assessment of companies and their projects is the next important step in the investment process. This involves understanding a range of characteristics of the deposit(s) that may affect their suitability for economic development. Part of this review includes site visits and meetings with senior technical staff to investigate details behind resource estimations, mine plans, processing designs and issues related to environmental and government licensing, where applicable. Other factors considered are sustainability, competitive advantage (inclusive of ESG factors), industry position, capital needs, management, financial metrics and valuations.
The final step involves selection of the most attractive investment opportunities. Portfolio construction and risk management will have regard to the exposure to individual commodities and the stage of development (i.e. Lassonde Curve) of the underlying companies.
Once invested, the Fund will contain an attractive mix of assets sourced from the entire investment universe yet will be diversified by commodity type and stage of development.
- An initial desktop review leverages Acorn Capital’s proprietary database to screen more than 1,300 companies, which collectively hold greater than 6,700 underlying resources.
- A qualitative assessment of companies and their project/s is conducted. This involves a detailed review of deposit/s and their suitability for economic development.
- Post the quantitative and qualitative review a ranking process is used to select the most attractive investment opportunities for the Fund.
Acorn Capital’s development stages applied to the Lassonde Curve – illustrating changes in the values of stocks from exploration to mining.
Acorn Capital was established in 1998 as an active, long-only fund manager specialising in emerging Australian companies. Acorn Capital has a large research and investment team covering all industries across public and private markets.
The team manages money for a range of clients, including large pension and superannuation funds, high net-worth wholesale investors, family offices, retail and advised clients.
Rick Squire is a Portfolio Manager for the Energy and Materials – Resources sectors. He is a geologist with over 25 years of experience in the resources industry, including 12 years in mining finance and investment.
Rick joined Acorn Capital 6.5 years ago after working at Deutsche Bank and TrailStone Group. Prior to this, Rick was a Research Fellow at The University of Melbourne and Monash University where he held industry-supported positions investigating the genesis of world-class gold and base-metal deposits.
Rick holds a Bachelor of Science (Hons) from Monash University and a PhD (Geology) from The University of Tasmania.
Karina Bader is the Analyst conducting the fundamental investment research on companies & selecting investments for client portfolios in the Resources and Energy sectors. Karina joined Acorn Capital in 2009.
A geologist by training, Karina’s career began over 25 years ago as a project geologist with resource companies and consultants primarily in gold exploration.
Karina holds a Bachelor of Science (Hons) from Monash University, a Master of Business Administration (Tech Mgt) from Deakin University and is a graduate of the AICD directors' course.
Kate McDermott is the Head of Distribution for the Acorn Capital wholesale funds. She began her career at Credit Suisse Asset Management in 2003, which later became Aberdeen Asset Management.
Kate has also worked at BlackRock as State Manager and Realm Investment House as Head of Distribution. Kate holds a Bachelor of Economics from the University of Tasmania and a Diploma in Financial Planning from Deakin.
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