November 2017 Fund Performance & Market Commentary

​The Delbrook Resource Opportunities Fund returned +3.4% in the month of November vs. a return of +0.9% for the SPDR S&P Metals and Mining ETF, the Fund’s closest benchmark. Year-to-date the Fund has returned +10.3%, approximately twice the performance of the benchmark, while maintaining a Sharpe ratio of approximately 1.1.

The Fund has begun to unwind its short positions within the precious metals space in anticipation of a rebound in gold prices after the US Federal Reserve meeting scheduled for December 13th.  With 98.3% probability of a 25-basis point hike currently priced into the bond market, we see limited downside to precious metals equites in the short term, barring a dramatic hawkish shift in “fed-speak” – something we see as low probability given recent economic data and new Fed leadership scheduled for early 2018...

Matthew Zabloski