TITAN INV PARTNERS LATEST NATURAL RESOURCES REPORT OUT

Similar to our last quarter report, there have been no material changes to the portfolio composition aside from position trimming and the exiting from the silver future position as the fund experienced a drawdown due to the marked underperformance of oil and other commodity stocks relative to the wider market. As with our Precious Metals fund, given our perception of exceptional value now present within these sectors, our natural inclination, as detailed in our mandate, is to be positioned net long. With leverage however, when the commodities spectrums underperforms then we are similarly likely to suffer given our long bias at this point in the cycle.

Towards the very end of the quarter we rebuilt our long gold position, reasoning that after a near 30% fall on the year, record short positioning by managed money players (see chart below), medium term oversold indicators and actually going long being “the hard thing to do”, that this was a recipe worth including in our portfolio. Ditto, we rebuilt our exposure in the gold mining ETF’s (having sold down near the peaks in August) – both the majors and juniors towards the price nadirs seen in the closing weeks of 2013 whilst the gold price was hovering tantalisingly close to the end June low of $1180/oz.

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