RS Global Natural Resources Long/Short Equity Strategy
Strategy Attributes
The objective of the RS GNR Long/Short Strategy is to capture the unique source of returns related to an advantaged commodity producer's ability to grow net asset value independent of commodity prices. We aim to capture this return stream while reducing commodity and equity-related beta/volatility.Long Strategy
- Concentrated positions around the owners of advantaged assets
- Advantaged assets grow NAV independent of commodity prices
Short Strategy
- Focus on 3rd and 4th quartile assets that earn sub-economic returns on capital across a commodity price cycle
- Shorts are employed to reduce commodity and equity beta/volatility
Process and Philosophy
- Value-oriented investment philosophy emphasizing capital preservation and through-cycle returns
- Strategy leverages long-term experience in analyzing project-level economics, establishing commodity specific cost curves and the identification of advantaged assets and companies
- Private equity approach with hundreds of hours of analysis supporting investment decisions, with a focus on management acumen and returns on capital
Investment Objective
The strategy aims to generate at least 8-10% annualized returns across a commodity price cycle with less than half the volatility of the S&P North American Natural Resource Sector Index.
Portfolio Facts
| Inception | 1/15/09 |
| AUM (as of 12/31/11) | $25,179,239 |
The Global Natural Resources Composite includes all Natural Resources accounts managed by RS Investments from November 15, 1995 through June 30, 2008. Prior to 12/1/03 performance results represent returns for a single account. Monthly composite returns are calculated by weighting each account's monthly return by its beginning value as a percent of the total composite's beginning market value. Quarterly and annual returns are calculated by linking the monthly and quarterly returns, respectively, through compound multiplication. Performance numbers above are after the deduction of fees.
1 The S&P North American Natural Resources Index is a modified cap-weighted index designed as a benchmark for U.S.-traded securities in the natural resources sector. The index includes companies involved in the following categories: extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations. Index results assume the reinvestment of dividends paid on the stocks constituting the index. Unlike the Fund, the index does not incur fees or expenses.