Base Carbon: CORSIA Could Create An Inflection In Coming Years

Group 1: Company Overview - Base Carbon (OTCQX: BCBNF) is a financier of global carbon abatement projects, which is expected to grow due to Article 6 of the Paris Agreement and CORSIA driving market liquidity [1] - Narweena, led by Richard Durant, is an asset manager that focuses on identifying market dislocations caused by a poor understanding of long-term business prospects [1] - Narweena aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] Group 2: Investment Strategy - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights [1] - The firm has a high risk appetite and a long-term investment horizon, focusing on deeply undervalued stocks, particularly in smaller cap markets [1] - The investment strategy is influenced by demographic trends, such as an aging population and low population growth, which are expected to create new investment opportunities [1] Group 3: Market Dynamics - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may face rising costs and diseconomies of scale, impacting their performance negatively [1] - The economy is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments over time [1] Group 4: Capital Market Trends - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - The changing economic landscape suggests that traditional investment strategies may need to be reevaluated in light of these dynamics [1]