SSNLF - Old West Investment Management Q1 2024 Investor Letter
2024-04-12 11:45:00 ET
Summary
- Old West Investment Management was founded based on the values embodied in the Code of the West. We are committed to treating our investors as we ourselves would like to be treated.
- We underperformed our benchmarks in the first quarter; however, after struggling in January and February, we had a strong month of March, and April is off to a great start.
- The trillions of dollars invested passively in index funds feed into all of the Mega Cap tech companies driving the A.I. machine, but very few investors own companies producing the metals necessary to compute, store and network data.
- The supply of many metals is insufficient to meet future demand, and prices are too low to give an incentive for new development.
- We believe prices must rise to levels that make development projects economical, and the companies that can deliver supply into that environment will benefit.
Dear Investor,
The first quarter of 2024 started strong, with the stock market passing the baton from a solid performance in 2023. One notable difference between the two years is that the Magnificent 7 became the Mag 4 in the first quarter as Apple ( AAPL ), Tesla ( TSLA ) and Alphabet ( GOOG , GOOGL ) had various issues.
Unlike 2023, the first quarter rally was broader, as the equal weighted S&P was up 7.7% and the Russell Small Cap index was up 5%....
Old West Investment Management Q1 2024 Investor Letter