A Natural Selection
02/03/2006 12:00 am EST
"One big trend that has multi-year potential is commodities," says Yiannis Mostrous, an expert on both global investing and resources and a contributing editor to the KCI team, a collective tour de force in the advisory industry. Here's his fund of choice for the sector.
"Oil, copper, nickel, and aluminum are being gobbled up by the growing world economy, yet many commodity markets have suffered from two decades of under-investment in new capacity. In addition, China and India have now reached critical mass, rapidly increasing the demand for many basic materials. Within the universe of commodity funds, the energy funds are the unsurprising standouts. RS Global Natural Resources (RSNRX) is overweight energy and has performed spectacularly during the past two years.
"We like the fund due to its ability to buy stocks outside of the energy sector in order to fully capitalize on the commodity story. T he fund has previously taken positions in mining companies as well as other commodity producers. Its been a great two years for energy funds. Regardless of whether 2006 turns out to be an up or down year in energy or commodities, RS Global Natural Resources is a wise buy for investors with a five- or 10-year time horizon."