A store of wealth and a hedge against systemic risk, currency depreciation and inflation, gold has historically improved portfolios’ risk-adjusted returns, delivered positive returns, and provided liquidity to meet liabilities in times of market stress.  

 

 

 

 

It is a contradiction that is accepted by seasoned investors, but rarely 

mentioned in general conversation - financial markets aren't always the best arbiters of value or allocators of capital. 

 

If this is a problem for those smaller, growth companies out there banging the drum for good assets or projects, then it is an opportunity for those smart enough to spot this anomaly. 

 

Glenn King is one of those people who has always had a keen eye for where the market has flatly mis-priced the risk-reward (or should I say reward-risk) equation. 

 

He reveals he was a successful early investor in Strategic Minerals and Sirius Minerals before parlaying that experience into his business, Oakmount & Partners, which he set up in 2009. 

 

Oakmount sources much-needed growth capital for projects, mainly in natural resources and usually ones with a green slant to them. 

 

It does this by tapping into a pool of high-net-worth and ultra-high-net-worth investors who share King's foresight. 

 

In return for providing this capital, they are looking for a better than market return for their backing with the added kicker of capital growth. 

 

This circle is squared by using a convertible loan note structure that might pay an annual yield in the 7-12% range but also provides the 'upside potential' of a price increase you might enjoy buying equity.