Thank you to Chris Larson at FundFire for covering the upcoming launch of Gemcorp's Commodities Alternative Products Fund. This will be the first commodities-focused interval fund, with a unique investment profile and performance fee structure.
The GCAP strategy is an extension of a strategy already pursued by Gemcorp and its affiliates that will additionally benefit from what we believe will be an upcoming commodity cycle. This new cycle will be driven by three main factors:
1️⃣ First, general infrastructure spending globally is being driven by governments, for example, the IRA or the CHIPS Act.
2️⃣ Second, we are seeing increased levels of near-shoring and reshoring, which will drive demand for commodities globally as companies relocate their operations. Mexico, for example, just surpassed South Korea in GDP according to the IMF - a rise driven partly by the influx of capital expenditure into the country.
3️⃣ Finally, green capital expenditure and electrification, a focus for societies around the world, require a large number and quantity of commodities (e.g., graphite, lithium, aluminium, and cobalt). These three factors should increase the underlying demand for commodities as well as the demand to finance their production and transport.
Read more here (content behind paywall): https://lnkd.in/eR3RbfiW
#CommodityInvesting #AlternativeInvestments #InfrastructureSpending #NearShoring #Electrification
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