Metals & Mining

Over the course of the year, the QUIC Metals and Mining portfolio returned 57.0%, outperforming the S&P 500 by 41.5% but underperforming the sector benchmark by (50.0%). This outperformance relative to the broader benchmark was driven by our exposure to precious metals during the bull run in 2H25. However, we underperformed our sector benchmark due to its heavier weighting toward gold and junior miners, whose portfolio mix and operating leverage outpaced our investments in other commodities (e.g., methanol).

Looking ahead, the sector remains bullish on gold and believes the Middle Eastern conflict could catalyze: (1) the energy security trade, opening the door for a coal bull run in Asia post-shoulder season; (2) increased demand for electrification metals and uranium, driven by the combination of energy security concerns and AI-related power demand; (3) oil demand destruction, which may accelerate consumer adoption of EVs and support copper demand; and (4) higher global defense spending, driving demand for steel, rare earths, and particularly aluminum due to multi-year supply destruction caused by the war.