Pitch Keyword: Semiconductor supply chain

Liquid real assets with Will Thomson of Massif Capital; natural gas, tungsten and tin | S07 E33

• Investment Strategy: Will Thomson of Massif Capital focuses on investing in liquid real assets through publicly traded companies, emphasizing sectors like energy, materials, and infrastructure.
• Portfolio Construction: The strategy involves a concentrated portfolio with 15 positions on the long side and a few on the short side, focusing on companies with specific catalysts rather than broad commodity price exposure.
• Key Sectors: The discussion highlights investments in European natural gas, emphasizing companies with solid balance sheets and high dividend yields, and the strategic importance of the North Sea region.
• Bottlenecks and Opportunities: Thomson identifies bottlenecks in sectors like semiconductors and critical metals such as tungsten and tin, which are crucial for industrial and technological applications.
• Risk Management: The approach includes a focus on operational catalysts and political risk, with an understanding that patience and timing are critical due to the inherent volatility in real assets.
• Shorting Strategy: Short positions are opportunistic, targeting companies with negative trends and poor management, often in cyclical industries.
• Market Outlook: The podcast discusses the long-term outlook for energy, noting a lack of reinvestment in oil and gas, and the potential impact of geopolitical factors on supply chains.
• Innovation in Commodities: Thomson argues that investing in commodities is not necessarily being short human ingenuity, as these industries are highly innovative, employing numerous PhDs and driving technological advancements.