Crescat Capital commentary for the month of July 2020, discussing their Crescat Precious Metals Fund is now in business.
Seth Klarman Tells His Investors: Central Banks Are Treating Investors Like “Foolish Children”
"Surreal doesn't even begin to describe this moment," Seth Klarman noted in his second-quarter letter to the Baupost Group investors. Commenting on the market developments over the past six months, the value investor stated that events, which would typically occur over an extended time frame, had been compressed into just a few months. He noted Read More
Crescat Precious Metals Fund Is Now Open For Business
The Crescat Precious Metals Fund is now open and taking investments for the end of month cutoff. This fund will devote a substantial allocation of its capital to activist positions in the gold and silver mining industry. Different than our Precious Metals SMA, we will often accomplish this through negotiated private placement investments in public companies that can come with activist perks such as discounts, warrants, and anti-dilution rights.
Miners have been reluctant to spend capital even though gold prices have been moving higher. Thus, supply is likely to be constrained over the next several years. At the same time, demand for precious metals is only beginning to skyrocket after a decade-long bear market for gold and silver mining stocks, especially the juniors. This is an incredibly bullish fundamental macro setup for Crescat's timely activist fund.
We would need subscription documents back within the next several days to make the deadline for the August 1st start. Please contact Marek Iwahashi to receive offering documents and/or set up a call with the investment team to discuss this exciting opportunity.
For those who want to delve deeper into Crescat's macro views and investment strategies including the precious metals fund, check out portfolio manager, Tavi Costa's latest Real Vision video interview.
Crescat Capital LLC
Kevin C. Smith, CFA
Founder & Chief Investment Officer
Partner & Portfolio Manager