Tribeca bullish on uranium as prices continue to skyrocket

One of the challenges of investing in commodities and commodity stocks is that you have to get multiple things right. 

First and foremost, you need to get the direction of the commodity right. 

If you manage to do that successfully, you then need to pick the right stocks to take advantage of the opportunity. 

Not all stocks will perform the same way at the same time. When a commodity begins to move, people will want large-cap, highly liquid, producers.  

Such names are in the lowest risk part of the 'stack' and provide some security should the rally in the underlying commodity run out of steam. 

When the rally really takes hold, that's when the names further down in the stack - the more speculative developers and explorers, will also start to move. 

In terms of calling the uranium rally, Guy Keller, portfolio manager for the Tribeca Nuclear Energy Opportunities Fund, has been on point. 

In this Rapid Fire, he shares where he is looking in the stack following the recent ramp-up in prices. He also shares what would cause him to exit a position and other areas of interest in the realm of nuclear energy opportunities. 

For more from Keller, we will release a longer-form interview in the coming days, so stay tuned for the full insights. 

Note: This interview was recorded on the 24th of January 2024.

Edited transcript

Chris Conway: Guy, thanks for agreeing to do a quick Rapid Fire, talking about the uranium market and nuclear opportunities. This one is a yes or no answer. Are you still bullish on uranium after the recent run in prices?

Guy Keller: Yes.

Chris Conway: Is there a part of the market that is starting to look more appealing?

Guy Keller: Everything is looking appealing. The developers are looking appealing. The explorers have underperformed as well, so they will move as well, but the whole sector is looking appealing.

Chris Conway: Just on the developers, why are they starting to look a little bit more appealing?

Guy Keller: Just because there's more eyeballs. They've sat in the more liquid things and more investors are looking for opportunities, and they're looking for the next trade.

Chris Conway: What is the major factor you consider when you're exiting a position?

Guy Keller: Performance. If they're starting to outperform and becoming too big a part of the portfolio, they need to be trimmed. So that's certainly not an exit. And bad behaviour. If they're not doing what I want them to do, it's time to move on and reward those who are moving forward with shareholder-accretive projects.

Chris Conway: If you could only hold one stock to participate in the current opportunity, what would it be?

Guy Keller: That's easy. Tribeca Nuclear Energy Opportunities Fund.

Chris Conway: Good answer. Well done. Last one, Guy. You look beyond uranium. Let's not forget you also look at nuclear opportunities, as you term it. Is there anything else that is exciting you in this space?

Guy Keller: Almost, but not yet. The small modular reactor and advanced reactors are a part of the sector that's going to bring the tech element to the trade, but I still think it's probably two to three years away because governments haven't worked out who should foot the bill in building the first ones. Once that happens, I think you'll see a flood of those opportunities come to market for investors to be able to participate in.

Chris Conway: Guy, thanks as always for chatting with Livewire.

Guy Keller: Thanks, Chris.