Last week I connected with Matt Geiger who is managing partner at MJG Capital and we talked about his journey into the resource space, Gold, Uranium, and Benjamin Graham.
The first lithium ion battery became commercially available in the early 1970’s. However, it was only until the past decade that lithium-ion became the preeminent battery type globally. All electric vehicles currently on the road use lithium-ion batteries and, for at least the next decade, this will remain the case.
Matt discusses his company, MJG Capital which has a focus on the natural resource industry exclusively. MJG is a private equity firm which allows investors to participate in a fund approach vs. direct investing which offers an alternative for investors to gain exposure to the sector.
Matt discusses the reasons why he does not like gold as much as other metals. He discusses his four other areas of interest which are in power generation, the electric vehicle revolution, higher value diets, and the Internet-of-things. As the world becomes freer and more productive, many countries will want to live the modern lifestyle. He likes silver, copper, uranium, and rare earths.
One year away from graduating from Wharton, Matt Geiger dropped out. You can imagine the response from his parents, who met at Stanford and subsequently became entrenched in the world of Silicon Valley business. Nonetheless, Matt was not your typical student, even for Ivy League standard, having just raised significant capital for a resource fund, and another $2 million to seed his tech-company.
Matt thinks we were in a consolidation period of this bull market for the past year. It’s been a relatively healthy period for investors to get into the market. We are more likely to reach 1400 than to see 1200 again. There is a lot of activity and multi-year highs occurring in the base metals. Battery metals are also showing growth.
Ardea Resources is the most recently added position to the MJG portfolio and our only cobalt investment. With a fully diluted Enterprise Value of ~A$65m, Ardea provides more leverage to the price of cobalt than any other public vehicle globally.
The severity of the commodities bear market from 2011–2015 makes Matt Geiger, managing partner at MJG Capital, confident that the current hard asset bull market will last into 2019 and quite possibly longer. In this interview with The Gold Report, Geiger discusses commodities he is especially keen on right now and several companies that he expects to perform well.
At 24 years of age, Matt Geiger is one of the brightest and youngest minds in the resource space. In 2011 he dropped out of the prestigious Wharton Business School to build a Silicon Valley start-up with a class-mate. To date, the duo has secured $10 million in funding. Concurrently, Matt launched a resource fund, raising several million dollars to pursue investments in the junior mining space.
Aside from the exuberance surrounding the tops of bull markets, the general investment public is uninterested and underinvested in natural resource equities, says Matt Geiger, founder of MJG Capital Limited Partners. Geiger views the general apathy toward natural resources as an opportunity, and profiles three companies that he believes are in position to break away from the herd.