L2 Capital

In today's episode, Marcelo López spoke with Adam Rozencwajg, founding partner of Goehring & Rozencwajg, an investment firm linked to natural resources such as mining, energy and agriculture. Prior to founding G&R’s, the partners were responsible for $ 5 billion of AUM at Chilton Investment Company. Adam talks about the investment process and how they look for opportunities in the commodities sector, with a value investing approach, meaning that they look for commodities that currently have depressed prices at the same time that present a strong possibility of course reversion and price appreciation.  Adam Rozencwajg analyses the relationship between the price of commodities as a whole and the price of the financial markets today and makes a retrospective of the past, showing that at times, when this relationship was that insane, great returns followed. The first commodity that Adam talks about is oil. He highlights a historical difference between the per capita GDP and a country's oil consumptio