March Fund Performance & Market Commentary

The Delbrook Resource Opportunities Fund declined -6.7% in March. On a gross basis, long positions returned -10.4% and short positions +1.7%. The Fund’s annualized return since inception is +14.4%.

From a commodity exposure standpoint, base metals comprised 46.8% of the Fund’s exposure, while precious metals accounted for 42.8%. Long positions in mid-capitalization precious metal equities were responsible for the majority of the declines during the month. 

On specific names, the Fund increased its long exposure to Torex Gold (TXG) – an intermediate gold producer focused on the Morelos Property, 180 km southwest of Mexico City. Throughout the first quarter tensions with a rival labour union escalated, ultimately forcing a temporary suspension of operations and a >20% drop of TXG’s share price throughout March.

On April 6th the company issued a press release announcing the end of the blockade. On the back of that news, TXG’s share price has increased by approximately 60%.

Matthew Zabloski
Portfolio Manager/Founder