Group 1 - L1 Long Short Fund generated a return of 13.3% in Q3 2025, bringing the calendar-year performance to 28.7% [1] - The portfolio benefited from rising Gold and Copper prices, with 19 stocks contributing over 0.5% to returns [1] - Dovish Fed commentary, robust U.S. earnings, and continued momentum in A.I. investment lifted global equities higher [1] Group 2 - Hudbay Minerals Inc. (NYSE:HBM) had a one-month return of 18.07% and a 52-week gain of 115.01% [2] - As of December 11, 2025, Hudbay Minerals Inc. closed at $18.62 per share, with a market capitalization of $7.38 billion [2] - Hudbay's shares rose by 46% in Q3 2025, driven by higher copper prices and supply disruptions from Freeport's Grasberg mine [3] - The interruption at Grasberg, which accounts for 3% of global copper supply, compounds other operational disruptions globally [3] - Demand for copper remains strong due to growth drivers in electrification, A.I., and defense [3]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Global Theme Machine**, which analyzes the attractiveness of 93 global themes across nearly 5000 listed companies, supported by over 200 Citi Fundamental Analysts [1][8]. Core Insights - **Theme Rankings**: - The **Pension Shortfalls** theme is now the top-ranked theme, while the **Risky Business** theme has dropped to 5th due to a decline in momentum rankings [2][12]. - The **Defence** theme has re-entered the top 10, attributed to ongoing geopolitical changes [2][12]. - **Model Performance**: - Recent months have seen a decline in model performance, with November marking the first negative return for top themes since March. The top themes posted a performance of -1.43% compared to -1.27% for the bottom themes [3][16]. - **Top Performing Themes**: - Pharma-oriented themes, particularly **Genetically-Informed Therapies** and **Biotech**, have shown consistent outperformance, with returns of 6.40% and 6.10% respectively in November [4][21]. - **Quantum Computing** experienced a decline of -2.79% in November but remains one of the better performers over the last three months [4][20]. Additional Insights - **Theme Performance Metrics**: - The report provides a systematic framework to evaluate themes based on various financial metrics, including valuation, growth, and price momentum [9][35]. - **Market Volatility**: - The report highlights the impact of market volatility on theme performance, indicating that many long-term secular themes are under pressure [3][16]. - **Changes in Fundamental Attractiveness**: - **Fossil Fuels** showed significant improvement in ranking, moving from 82nd to 45th, indicating a potential shift in investor sentiment [31]. Notable Rankings - **Top Ranked Themes**: - Pension Shortfalls (1st) - Mobile Payments (2nd) - FinTech (3rd) - Digital Currency (4th) - Risky Business (5th) [12][39]. - **Bottom Ranked Themes**: - Energy Efficiency (82nd) - Additive Manufacturing (83rd) - PropTech (84th) - Manufacturing Onshoring (85th) - Beautiful People (86th) [12][39]. Conclusion - The **Global Theme Machine** continues to provide valuable insights into market trends and investment opportunities, with a focus on the evolving dynamics of various themes. The report emphasizes the importance of monitoring these themes for potential investment strategies moving forward.

Shashank Joshi, our defence editor, says survival on the front line is anything but simple https://t.co/6XZ3L6XfZN ...

Core Insights - Amaroq's re-assay results from the Black Angel mine confirm high-grade mineralization of zinc, lead, and silver, along with critical minerals like germanium, gallium, and cadmium [1][2][4] Mineral Grades - The average grades from the Black Angel deposit are reported as 24.6% zinc, 28.1% lead, and 295 grams per tonne of silver [2] - Commercial levels of germanium at 44 parts per million, gallium at 21 parts per million, and cadmium at 1,328 parts per million were identified [2] Future Projections - Future zinc concentrates from the Black Angel mine may achieve commercial concentrate grades of approximately 102 parts per million germanium, 48.5 parts per million gallium, and 3,040 parts per million cadmium based on preliminary mass-balance assumptions [3] Strategic Importance - The presence of critical metals like germanium and gallium, which are essential for AI, defense, renewable energy, and advanced technology applications, highlights the strategic importance of Amaroq's portfolio to Western supply chains [6] - The company has completed all conditions precedent for the acquisition of the Black Angel mine, reinforcing its development strategy in Greenland [6] Acquisition Plans - Amaroq expects to receive final approval from the Government of Greenland for the acquisition of the Kangerluarsuk licenses in the fourth quarter of 2025, enhancing its development project pipeline [7]

Long a region of diplomatic tranquillity, today the Arctic is fast becoming a zone for potential confrontation. America has much to do to ramp up defence in the region https://t.co/soIri034OO ...

Geopolitical & Security - NATO is reinforcing its defense capabilities following the downing of Russian drones over Poland [1]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Defence** industry, highlighting its increasing attractiveness in the current geopolitical climate [2][9]. Core Insights - The **Defence theme** has seen a significant boost in momentum, breaking into the top ten themes due to improved price and earnings momentum scores [2][9]. - The **performance of themes** has been mixed; attractive themes outperformed the MSCI World index, while unattractive themes showed a slight increase of 35 basis points relative to attractive themes [3]. - **Year-to-date performance** indicates that global equities are driven by Value and Momentum outperformance, with recommendations to focus on themes like Cyber Security, Digital Currency, and Fintech, while avoiding Sustainable Materials and Biofuels [4]. Theme Rankings - The **top three themes** are Risky Business, FinTech, and Mobile Payments, with Defence theme now ranked 2 in Earnings Momentum and 3 in Price Momentum [9]. - The **bottom-ranked themes** include Greening the Home, Sustainable Materials, and Circular Economy, with five new entrants scoring poorly on valuation [10]. Performance Metrics - The **MSCI World index** is currently ranked 6th overall, with the Defence theme ranked 10th overall and showing improvements in quality metrics [11][34]. - The **Scarce Resources theme** was the biggest winner in August, increasing by nearly 10%, consistent with broader Materials sector performance [19]. Notable Trends - There is a **dispersion in performance** among healthcare-oriented themes, with Biotech performing strongly while Generics & Biosimilars lag behind [20]. - The **Defence theme** ranks highly on momentum factors, indicating a positive outlook for stocks within this sector [34]. Additional Insights - The **Global Theme Machine** combines insights from fundamental analysts with quantitative analysis to evaluate theme attractiveness across various financial metrics [6][7]. - The report emphasizes the importance of understanding macro sensitivities and crowdedness of themes to gauge investor interest [8]. Conclusion - The Defence industry is positioned favorably amidst current geopolitical tensions, with strong momentum and positive earnings forecasts. Investors are encouraged to consider thematic exposure in this sector while being cautious of underperforming themes.

Geopolitical Implications - Trade and defence crisis triggered by Trump requires Modi's response [1] International Relations - Analysis needed on how Modi should respond to the trade and defence crisis [1]