We are hosting a kick-off call for Hedgeye Materials coverage TODAY (Thursday, November 12th at 1:00 P.M.), and will illustrate our investment process in the Gold Mining industry.
Gold Bugs Bitten: Gold prices in dollars have declined since 2011, despite two incremental rounds of quantitative easing and perpetual zero interest rates. US long bonds have performed well in a similar environment. What are the gold bugs missing? We’ll put forth our data-driven take in our Materials launch deck.
Differentiated Sector Approach: The Materials coverage team of Jay VanSciver and Ben Ryan applies our experience in cyclicals, macroeconomics, and commodities to produce Best-Idea focused, process-driven Materials sector research.
Our research process has three key components:
- Structural Weakness/Strength: Identify structural vulnerability or resiliency in commodity related business (e.g. over/under capacity, demand susceptibility, deteriorating/improving structural position) that should have a dominant impact on market prices.
- Unidentified Supply/Demand Changes: We then look within those industries to see if consensus estimates for production or consumption are likely to prove incorrect based on our data-driven proprietary forecasts ranges.
- Identify Companies Valued Inappropriately Relative To Forecast: Deep-dive company specific valuation work oriented toward finding effective exposure our broader commodity thesis. We align with our firm's top-down macro view when applicable.
Coverage To Broaden: While we believe the Gold Mining Industry provides a clear platform to demonstrate our process, our coverage will expand in coming quarters to areas where we see the best alpha opportunities. We plan to host at least one Best Ideas call per quarter and to publish daily/weekly sector highlights, in addition to key research notes.
Confirmation Number: 13623545
Presentation Link: Materials Launch
As always, our prepared remarks will be followed by a live, anonymous Q&A session. Please submit your questions to . Also, for those of you who cannot join us live, we will be distributing a replay video of the call shortly after it concludes.