Why the World’s Biggest Funds Get Mining Wrong (David Sparks)

We’ve got the pleasure of sharing a conversation with David Sparks — an investor in the natural resources world with experience at some of the world’s biggest hedge funds, including the famed multi-strat firm Millennium, as well as BBT and Exodus Point.

In this episode, we unpack why investing in mining from a pod shop is often a flawed strategy, how these firms came to dominate the market, and what it actually means when a pod “blows up.”

David also shares his picks for the most impressive management teams in global mining and plenty more along the way.

We hope you enjoy this one as much as we did. 

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TIMESTAMPS

00:00 Introduction

02:09 David Sparks on MoM

07:55 Being Market Neutral

09:58 Why the model doesn’t work in mining

13:40 The Volatility

16:07 Reflecting on multi strategy funds

19:02 The worst way to invest in mining

23:55 Shorting

27:20 The “lack of risk”

30:40 Access to management

32:00 Deploying capital in an unconstrained world

34:40 Are mining stocks more inefficient?

36:40 Cheap stocks

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PARTNERS

Thank you to the mining services businesses that make thiscontent possible:

·       ⁠Grounded⁠ - Infrastructure for remote mining and civil projects Australia wide | Paul Natoli: [email protected]

·       ⁠Sandvik Ground Support⁠ – The only ground support you’ll ever need

·       ⁠Cross Boundary Energy⁠ – Independent power producer for the global mining industry | [email protected] +61 466 184 943

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DISCLAIMER

All information in this podcast is for education and entertainment purposes only and is of general nature only. Please ensure you read our ⁠full disclaimer⁠.