Stockholm (HedgeNordic) – Former hedge fund manager Eric Strand is launching the fourth fund under his own fund boutique AuAg Fonder after receiving approval from the Swedish Financial Supervisory Authority. The soon-to-be-launched fund, AuAg Essential Metals, is an equity fund with broad exposure to mining companies that are extracting metals needed in the transition to a green- and high-tech future.
“Our new fund, AuAg Essential Metals, has been approved by the Swedish FSA,” announces Strand, who will manage the fund alongside co-portfolio manager Christopher Svensson. “It is an equity fund with broad exposure towards the mining companies which extract industrial metals as well as metals that will be in high demand in our green- and high-tech future,” he explains. “The fund will be available for investors around Christmas/New year.”
AuAg Essential Metals will invest at least 90 percent of its portfolio in companies involved in the extraction and processing of basic materials, with a special focus on industrial and new technology metals such as iron, copper, aluminium, zinc, lead, tin, lithium, nickel, among many others. “Industrial metals, such as steel, aluminium, copper, and zinc, are essential when electrifying our society and building products such as cars and planes,” explains the duo running the fund.
“Tech metals, such as lithium, nickel, cobalt, and rare earth metals, have unique properties that make them indispensable in applications such as batteries, solar cells, computers, and space technology,” they explain. “As the growth of our developed world accelerates, the demand for certain metals increases faster than we are able to start new mines. This, combined with the increased focus on ESG, makes investing in the best-in-class miners even more essential.”
Eric Strand launched the first fund under his fund boutique AuAg Fonder in November 2019. The fund, AuAg Silver Bullet, is a silver-focused long-only equity fund with over SEK 700 million in assets under management. The boutique’s second fund, AuAg Precious Green, oversees in excess of 500 million in assets under management. AuAg Fonder also runs the AuAg ESG Gold Mining UCITS ETF, which seeks to offer exposure to a select group of best-in-class miners.