Investment Strategy

 



 

Mission Statement

AC Investment Management, LLC (ACIM) is a private New York-based investment advisor specializing in focused, niche commodity investing finding dislocations and value in the markets. ACIM manages capital on behalf of institutional investors, family offices, and high net worth individuals.

Our biggest focus for the past few years has been the technological advancements in renewable energy and storage. This has created a disruption in global power markets across the supply chain. The traditional power cost curve has been in contango; we anticipate a cost curve in steep backwardation moving forward. This will affect a variety of businesses opening our investment opportunities to the following industries:

Electric Vehicles: Direct metals, car manufactures, auto-parts, mining funds, leasing companies will all be disrupted as ICE engines become obsolete.
Solar and Battery Tech: Seized the attention of power market as our planet enters period of energy transition. Solar installation costs have dropped 70% since 2010.
Utilities:  Unregulated fossil fuel generators such as PG&E will become indefensible as renewable electricity and storage pricing reach grid parity across the globe. In China,  coal generated power is more expensive than solar technology.
Metals: Iron-ore, nickel, lithium & other rare earths. Investments could include the equity investments in production companies and physical liquid assets.
Legislation: Governments across the globe are pushing for CO2 reductions. Examples: California, Europe, Asia.

 

Investment Philosophy

  • ACIM’s funds invest across the commodities spectrum, including agriculture, energy, softs, livestock, shipping, and base metals.
  • ACIM identifies individual commodities markets that are likely to provide future trading opportunities, and actively manages the portfolio to take best advantage of these opportunities.
  • ACIM focuses on hiring the premier specialist traders in niche, often capital-constrained commodity markets. All trading is discretionary and fundamental.
  • ACIM trades equities when the value proposition is better than the commodity.
 
When markets were hit with Covid-19 in March 2020 – ACIM funds weathered the storm with the lowest point YTD return of negative 3% March 16th 2020. S&P500 and the Bloomberg Commodity Index saw -31% in that same month. Our diversity in sectors, exposure to commodities, and our long/short positions enabled this muted impact.
Our daily volatility is also a leading fund result with the worst losing day in 2020 of only 2% compared to S&P 500 -11% and Bloomberg Commodity Index -4%.
Past history is not indicative of future results.