The RS Hard Assets Team invests in companies with key strategic advantages: low-cost, capital efficient producing assets, an attractive inventory of development projects and management teams focused on optimizing returns on capital. These companies possess unique competitive positions which allow them to earn persistent excess returns on capital, and as a result generate significant returns for their shareholders.
As value investors, we believe that capital preservation is the key to achieving superior risk-adjusted returns. We attempt to protect our shareholders' capital first by identifying advantaged assets, and then purchasing the company when we believe that our entry price is protected by the underlying value of the projects. We attempt to reduce commodity price risk by reallocating capital from positions which discount commodity prices that are above our assessment of the marginal cost of supply (i.e. are unsustainable) into those advantaged assets which we can buy at a discount to proved-only net asset value.
RS Global Natural Resources Dedicated Site