For Canadian readers I believe this new "fund" Coxe is bringing out will apply to you, so I thought I'd highlight it... I mean since you cannot have me, you at least can have Coxe ;) But on a serious note, he approaches things identical to me with big macro economic thoughts/views and makes his investing decisions off of that... parallel to my "rising tide lifts all boats" strategy. He is also a huge believer in the long term in commodities as is Jim Rogers, and I [A Long Term View on Commodities] It is a strange methodology for a fund; it seems to be a "unit" with a warrant attached.
- Don Coxe, one of the living legends of the world of big-picture investing, is set to have his name in lights, or at least on a public company.
- Coxe, who has been in the investment world for three dozen years -- with a career ranging from an analyst at Gordon Capital to his current role as the global portfolio strategist at BMO Financial Group -- now has the Coxe Commodity Strategy Fund named after himself.
- "The fund has been created to provide investors with long-term capital growth by executing the commodity investment strategies of Donald Coxe," said the recently filed prospectus.
- Coxe, who is based in Chicago, and Sprott share a common investment thesis: both believe in a continuing strong demand for commodities.
- "The demand for commodities can be expected to be driven by the needs of this bourgeoning middle class, as they acquire dwellings with both basic and modern amenities, automobiles and consume higher protein diet," said the prospectus, noting that Coxe will advise the fund on its commodity sector weightings and the selection of securities. The initial allocation runs this way: agriculture (28%); metals and steel (18%); energy (29%); and precious metals (25%).
- Coxe's fund is offering $10 units with each unit consisting of a unit and a warrant. The warrant runs for three years and allows the holder to buy another unit at $11.25. The fund doesn't have a fixed term to maturity.
- Of course there is a contrarian view about commodities. Victoria-based John di Tomasso, the CTA manager of the year according to U.S.-based Lipper, is basically bullish on the commodities though he is short the base metals, a group that includes nickel, lead copper, zinc and tin. The reason: "They have gotten wildly over-priced. The commodity thesis is well known but speculation has driven prices to wild heights."
