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From Benedicte Gravrand, Geneva: Opalesque continues the conversation with Sandy Koifman, managing partner at the London and Geneva-based Bedrock Group. This is a follow-up of yesterday’s article on the Bedrock Global Themes Fund: Opalesque Exclusive: Emerging market, energy rock Bedrock Global Themes fund (up 7.3% in September), Macro views (part 1), here.

Commodities theme: benefiting from mismanagement of soft commodities That includes everything that comes out of the ground, except oil. We figured out that mining companies offer us leverage on the underlying commodities. We do not want to be stock-pickers so we invest in a Merrill Lynch mining fund, which has done extremely well. That is our main holding within commodities. Unlike oil, this is not a commodity that runs out. You use copper to build whatever you want and in 50 years you re-melt it to build more. It is recyclable. We will not run out of copper in my life-time although we might run out of oil.

Mining is not cheap and easy though: as an anecdote, a 5,000 year old copper mine was re-opened in Israel in the early 50’s but only for a few years due to the sheer running cost. Now that copper’s value is more interesting, the mine cannot be reopened for lack of mining engineers. Also, companies like Caterpillar cannot supply......................

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