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NewGen reports 2010 perfomance for the NewGen Mining Fund SPC and NewGen Mining Fund LP of 88.7% (net) and 84.4% (net), respectively.
NewGen announces the launch of the NewGen Mining Fund LP for Canadian Accredited Investors.
NewGen launches the NewGen Mining Fund SPC for offshore investors.
NewGen Asset Management Limited currently manages two funds; (1) the NewGen Mining Fund SPC (offshore investors); and (2) the NewGen Mining Fund LP (Canadian investors).
The NewGen Mining Funds aim to generate strong returns though selective equity investments within the global mining industry. The disciplined management strategy is driven by in-depth fundamental and quantitative research to create a focussed portfolio of high conviction holdings. The manager places a heavy emphasis on risk management. Downside risk is mitigated though a combination of hedging strategies and active portfolio management, while liquidity is closely monitored. Net exposures are frequently adjusted in accordance to market conditions and typically range from 50-150%.
Stock selection is a key distinguishing factor for the NewGen Funds! The research team implements a rigorous process of quantitative and fundamental research to identify investments that offer (1) world class projects; (2) strong catalysts; (3) proven management teams; and (4) takeover potential (low cost, large scale, politically stable). The investment universe consists of over 1500 companies and the research team looks to identify the top opportunities at optimal points along the development curve.
There is an investment bias towards advanced exploration and development stage companies, but the portfolio also includes mid and large-cap companies to ensure good overall portfolio liquidity. The earlier stage companies can offer exceptional return potential; however, there is an associated elevated risk due to a shortage of high-quality assets and good management teams. NewGen has the ability to successfully “navigate the minefield” because (1) we know the management teams; (2) we have in-house technical and financial expertise; (3) we have a strong network to access ideas, information and deal flow; (4) we factor in political, macro, technical and market risks; and (5) we have a disciplined due diligence and selection process.
| Liquidity | Maintain good overal portoflio liquidity |
|---|---|
| Diversification | Estimated 30-40 stocks |
| Position Size | 2.5-3.5% average, max 10% on any position |
| Net Exposure | Expected 50-150% |
| Gross Exposure | Expected 150-250% |
| Portfolio Turnover | Actively managed >200% |
| Risk Management | Specific equity shorts, equity indexes, option strategies |
