The Uranium sector represents a highly asymmetric investment opportunity.
Small, underfollowed sector with no institutional sponsorship
Mired in a grueling 7-year bear market, during which the commodity price has decreased 85% and the number of industry participants has declined from over 500 to around 50. Few if any institutional investors are owners or understand the story creating tremendous inefficiency.
On the cusp of dramatic supply/demand imbalance
The Uranium sector is on the cusp of a dramatic supply/demand imbalance whereby inadequate supplies will not be able to meet rising global nuclear power demand.
Uranium producers are shutting in production as their mining costs are dramatically higher than current spot prices. The world’s two largest miners (Kazataprom and Cameco) have cut production by more than 10-20% during 2017.
Nuclear power demand is growing rapidly (1-2% per annum), with several hundred billion under construction globally, led by Asia and other developing world countries who need clean air and reliable power.
Michael Alkin is Chief Investment Officer and Founder of Sachem Cove Partners, LLC. He leads the entirety of the investment process. Mike has over 20 years of hedge fund experience on long and short side with extensive short selling experience across many industries.
Prior to founding Sachem Cove, he was an analyst and partner for seven years at Knott Partners. Before Knott he worked at Walker Smith Capital, Zweig-DiMenna and Windsor Partners.
Sachem Cove has a strategic partnership with Lloyd Harbor Capital Management, LLC.
Lloyd Harbor partners, and forms private investment vehicles, with domain experts in sectors generally characterized as being highly capital constrained and having barriers-to-entry either from real business advantages (tech-enabled processes, specialty sourcing etc) or significant regulation. They allocate capital to asymmetric investments with a significant probability of generating high, absolute, net returns, safely and consistently and with low correlation to traditional asset classes.