Providing investors with a balanced perspective, Massif Capital

Massif Capital Research

Providing investors with a balanced perspective

Massif Capital

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries.

The Massif Capital Real Asset Strategy is a global long/short equity strategy built around bottom-up stock picking. We are focused on creating a portfolio of businesses from within the Energy, Basic Materials and Industrial sectors that balance the environmental and economic realities of achieving a carbon-neutral economy.

Cross Asset Strategy

<ul><li>The S&amp;P/TSX Composite has fallen 15% or more from a closing high sixteen times since 1979.</li><li>The average drawdown during those episodes was 27.6% over eight months; the median was 23.4% over six.</li><li>The gap is almost entirely the two structural bears, 2000-02 and 2008-09, which fell roughly 50% and took an average of 51 months to regain their peaks.</li></ul>

The S&amp;P/TSX Composite has fallen 15% or more from a closing high sixteen times since 1979.The average drawdown during those episodes was 27.6% over eight months; the median was 23.4% over six.The gap is almost entirely the two structural bears, 2000-02 and 2008-09, which fell roughly 50% and took an average of 51 months to regain their peaks.

<ul><li>The first quarter's results were driven by mining and energy investments.</li><li>The Norwegian upstream complex (Var Energi, Equinor, Aker BP), joined by the UK's Harbour Energy, contributed a combined 12.0% of gross quarterly returns.</li><li>The materials sleeve added a further 11.2%, with performance split between miners and the warrant book. </li></ul>

The first quarter's results were driven by mining and energy investments.The Norwegian upstream complex (Var Energi, Equinor, Aker BP), joined by the UK's Harbour Energy, contributed a combined 12.0% of gross quarterly returns.The materials sleeve added a further 11.2%, with performance split between miners and the warrant book. 

<ul><li>The Commodity Purity Index (CPI, an unfortunate acronym) is a framework developed to measure, on a rolling basis, the extent to which the underlying commodity drives a commodity producer's stock price behavior.</li><li>The score runs from 0 to 100. A score of 80 or above means the stock moves almost entirely with the commodity: it is essentially a leveraged commodity instrument wrapped in equity form.</li><li>A score below 20 means that, despite being a copper miner or an oil producer, the commodity is barely registering as a driver of the stock's day-to-day behavior.</li></ul>

The Commodity Purity Index (CPI, an unfortunate acronym) is a framework developed to measure, on a rolling basis, the extent to which the underlying commodity drives a commodity producer's stock price behavior.The score runs from 0 to 100. A score of 80 or above means the stock moves almost entirely with the commodity: it is essentially a leveraged commodity instrument wrapped in equity form.A score below 20 means that, despite being a copper miner or an oil producer, the commodity is barely registering as a driver of the stock's day-to-day behavior.

You’re Not Long Copper: The Exposure Is Not What You Thought It Was

Thematic (Sector/Industry)

<ul><li>During the fourth quarter of 2025, the Massif Capital Real Assets Strategy advanced 9.6% net of fees, lifting full-year performance to 50.0% net of fees.</li><li>Gross gains from the long book totaled 13.3%, while the short book detracted 1.64%.</li><li>The strategy has now completed its 28th consecutive quarter, with a since-inception annualized return of 15.6% net of fees.</li></ul>

During the fourth quarter of 2025, the Massif Capital Real Assets Strategy advanced 9.6% net of fees, lifting full-year performance to 50.0% net of fees.Gross gains from the long book totaled 13.3%, while the short book detracted 1.64%.The strategy has now completed its 28th consecutive quarter, with a since-inception annualized return of 15.6% net of fees.

<ul><li>During the third quarter of 2025, the Massif Capital Real Assets Strategy returned 36.1% net of fees, bringing our YTD returns to 41.5% net of fees.</li><li>Gross-of-fees gains from the long book were 35.9% and short book gains were 0.73%.</li><li>The Real Assets strategy has now been running for 27 quarters, and this was our best quarter to date, bringing our since-inception annualized net-of-fees returns to 14.6%.</li></ul>

During the third quarter of 2025, the Massif Capital Real Assets Strategy returned 36.1% net of fees, bringing our YTD returns to 41.5% net of fees.Gross-of-fees gains from the long book were 35.9% and short book gains were 0.73%.The Real Assets strategy has now been running for 27 quarters, and this was our best quarter to date, bringing our since-inception annualized net-of-fees returns to 14.6%.

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries