INK Ultra Money: Opening the Venture door to big money

When I started to see Murray Sinclair loading up on Dundee Corporation (DC.A) in May, it helped firm up my conviction that the junior mining rally was going to have some legs. I had not seen him do much in terms of filings over the past few years, but why Dundee now? The penny started to drop over the weekend and today we wrote about our take on how Dundee could provide an on- ramp for institutions and advisors into the junior mining area.

While some pension funds and advisors will have their own strategies to get into the space, many will not devote the resources needed to get exposure to a group. That is where Dundee with its established name and cash stash has the potential to provide diversified exposure to the space for players who do not want to manage a bunch of junior stocks in their portfolios. Club members can watch the video summary now and a free version will be available here before the close.

Trades at a price-to-book below 1

Speaking of cash hoards, On Real Vision today, quant jock Joseph Mezrich at Normura Securities makes the case that many growth stocks are in favour because they offer downside tail risk protection due to having lots of cash in the bank. I agree with his take on big-tech safety. However, he loses me on his thesis that factor performance is essentially driven by the yield curve. While there may well be a relationship between the change in the yield curve and the performance of factors such as P/E and momentum, I believe there is a lot more going on. Moreover, even if that relationship were causal, there is no guarantee that such causation will hold going forward. Nevertheless, he makes a ton of insightful points, and you can watch his interview here.

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