Matt Zabloski: Fund Manager on Asset Based Investing in the Mining Sector
Delbrook’s approach is bottoms up asset based investing – that is investing in top quality assets that the market has misplaced. Delbrook has a strong technical team with a great level of experience and they focus on companies with a large gap between intrinsic value versus market value.
Matt believes that the $8 trillion of sovereign debt and negative yields will provide a good push into the precious metals sector. Delbrook looks for quality over quantity and facts rather than a good story.
Because the market in precious metals has been so driven down, even a small amount of institutional investment will cause large increases in share prices.
Shareholder activism while not yet needed, remains an option for when company direction is not going in a direction favourable to shareholders.
Talking points from this week’s interview:
• The recovery is in it’s first inning
• Shareholder activism remains an option to add value to a stock
• IDM Mining is a substantially undervalued stock
• Share dilution is still a factor to watch for many stocks