Geiger Counter (GCL’s) managers see the potential for further recovery in the uranium price, as more reactors come on line (particularly in China and India, where governments are keen to reduce CO2 emissions) while major producers hold off from reactivating mothballed mines. This should help broaden the recovery in uranium stocks beyond just the majors, benefitting GCL’s portfolio and potentially allowing it to make up recent underperformance. The managers note that uranium is emerging from a 10-year bear market which has left valuations of uranium miners at attractive levels.
Capital growth from a diversified global portfolio of uranium stocks
GCL aims to provide investors with capital growth by investing in a portfolio of securities of companies involved in the exploration, development and production of energy, as well as related service companies. Its main focus is the uranium sector, but up to 30% of assets can be invested in other resource-related companies. These include, but are not limited to, shares, convertibles, fixed-income securities and warrants.
CQS Group and New City Investment Managers
New City Investment Managers (NCIM) has been GCL’s investment manager since its launch in July 2006. On 1 October 2007, NCIM joined the CQS Group, a global diversified asset manager running multiple strategies with AUM of US$18.4 billion as at 28 February 2019. Keith Watson and Rob Crayfourd are responsible for the day-to-day management of GCL’s portfolio.
| wdt_ID | Year ended | Share price total return (%) | NAV total return (%) | URAX Index total return (%) | Cameco share price total return (%) | Global X Uranium ETF total return (%) |
|---|---|---|---|---|---|---|
| 1 | 28/02/15 | (39.7) | (25.5) | (25.9) | (29.8) | (33.8) |
| 2 | 28/02/16 | (27.6) | (31.9) | (37.2) | (10.9) | (36.6) |
| 3 | 28/02/17 | 106.4 | 77.4 | 61.3 | 5.5 | 48.6 |
| 4 | 28/02/18 | (28.6) | (39.9) | (2.8) | (25.8) | (31.3) |
| 5 | 28/02/19 | 0.0 | 0.4 | 11.2 | 37.2 | 1.0 |