• Leadership and ownership by investment professionals
• 100% employee owned
• Equity participation for all professionals
• Principals invest alongside clients
• Capacity to be limited, enhancing return potential
2
• Kopernik Global All-Cap
• Kopernik Global Unconstrained
• Kopernik Global Real Asset
• Kopernik International
Managed Assets
Mutual Funds $1,222.27 MM
Private Funds $208.77 MM
UCITS (Sub-advised) $410.77 MM
Separate Accounts $1,070.58 MM
Total Firm AUM $2,912.39 MM
Advisory Only Assets
Separate Accounts $277.57 MM
Total Managed and Advisory Only Assets: $3,189.96 MM
Assets as of September 30, 2017 are preliminary.
Mutual Funds42%
Private Funds
7%UCITS14%
Separate Accounts37%
3
a class of financial adviser that provide
automated, algorithm-driven financial advice or portfolio management
platforms with little to no human interference. The United States is the
clear global robo-advice leader by numbers, having more than 200
robo-advisors as of April 2017.Source: Business Insider, April 2017
still extinct.
8
Risk
Volatility
Attempting to Quantify the Unquantifiable (Risk)
Use Common Sense, Not Meaningless Statistics
(Tracking Error, Volatility, Beta)Tracking Error
Uncomfortable IdiosyncrasyFocus is Often on Risk to Manager/Advisor Career Rather Than Risk of
Permanent Loss of Capital in Client’s Portfolio Needs of Client Portfolio are Paramount
Value
Good and Services Intrinsic Value PV E (FCF) Intrinsic Value FCF
Time Central Bank Intervention Solve for IRR Rather Than NVP
Money Value is Established by Fiat Demand Large Rates of Interest for Fiat Currency
Over-Confidence
Short-termism“In a Complex, Adaptive System, Forecasting Is Impossible”
–Walter White Maintain Long-Term Time Horizon
ForecastingHumans are Notoriously Bad at Forecasting
The Best Investments Often Require Patience Have Patience and Conviction
Passive “Investing” Abrogation of Duty to Perform Price Discovery Due Diligence Know Your Circle of Confidence
11
1929 Stock Market Crash 1972 Stock Market Crash
2007 Stock Market Crash 1999 Stock Market Crash
0
50
100
150
200
250
300
350
400
Sep
-20
Sep
-21
Sep
-22
Sep
-23
Sep
-24
Sep
-25
Sep
-26
Sep
-27
Sep
-28
Sep
-29
Sep
-30
Sep
-31
Sep
-32
Sep
-33
Sep
-34
Dow Jones Industrial Average: 1920-1934
0
200
400
600
800
1000
1200
Mar
-72
May
-72
Jul-
72
Sep
-72
No
v-7
2
Jan
-73
Mar
-73
May
-73
Jul-
73
Sep
-73
No
v-7
3
Jan
-74
Mar
-74
May
-74
Jul-
74
Sep
-74
No
v-7
4
S&P 500 Index: 1972-1974
0
1000
2000
3000
4000
5000
6000
6/1
8/1
99
9
8/1
8/1
99
9
10
/18
/19
99
12
/18
/19
99
2/1
8/2
00
0
4/1
8/2
00
0
6/1
8/2
00
0
8/1
8/2
00
0
10
/18
/20
00
12
/18
/20
00
2/1
8/2
00
1
4/1
8/2
00
1
6/1
8/2
00
1
8/1
8/2
00
1
NASDAQ Composite: 1999-2001
0
200400
600
8001000
1200
1400
16001800
S&P Index: 2007-2009
15
$-
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$3,500.00
$4,000.00
$4,500.00
Sep
-10
Dec
-10
Mar
-11
Jun
-11
Sep
-11
Dec
-11
Mar
-12
Jun
-12
Sep
-12
Dec
-12
Mar
-13
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Bitcoin Price (Dollars)
19
TimeThe Future is Uncertain
Central Bank Meddling
“Be Fearful When Others are Greedy and
Greedy When Others are Fearful”
-Warren Buffet
Potential Upside
Year 50.0% 100.0% 150.0%
1 50.0% 100.0% 150.0%
Inte
rnal
Rat
e o
f R
etu
rn
2 22.5% 41.2% 58.1%
3 14.5% 26.0% 35.7%
4 10.7% 18.9% 25.7%
5 8.5% 14.9% 20.1%
6 7.0% 12.3% 16.5%
7 6.0% 10.4% 14.0%
8 5.2% 9.1% 12.1%
9 4.6% 8.0% 10.7%
10 4.1% 7.2% 9.6%
20
FIAT Money
No Intrinsic Value
Value Resides in the Integrity
of Government Officials
Only Own When Real Interest Rates are
High. Otherwise, Own Tangible Assets
22
FIAT Money
No Intrinsic Value
Value Resides in the Integrity
of Government Officials
Only Own When Real Interest Rates are
High. Otherwise, Own Tangible Assets
Source: World Gold Council, FRED: Federal Reserve Economic Data
23
FIAT Money
No Intrinsic Value
Value Resides in the Integrity
of Government Officials
Only Own When Real Interest Rates are
High. Otherwise, Own Tangible Assets
24
Over-Confidence; GrowthUnsustainable
Often Over PricedOnly Buy GARP or Value
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
MSCI World Value vs. MSCI World Growth 1974 - 2017
Source: Bloomberg
27
Over-Confidence Forecasting Exercise Patience and Conviction
Short-Termism Best Investments Require Patience Arbitrage
28
“Forecasts may tell you a great deal about the forecaster; they tell you
nothing about the future.”
-Warren Buffett
“While a trend shown in the past is a fact, a “future
trend” is only an assumption.”
“People who invest make money for themselves;
people who speculate make money for their
brokers.”
-Benjamin Graham
“We have two classes of forecasters: Those
who don’t know – and those who don’t
know they don’t know.”
-John Kenneth Galbraith
Over-Confidence
ForecastingHuman Nature Act Within Your Circle of Confidence
30
Soren Kierkegaard, 1840
Danish philosopher, theologian, poet, social critic and religious author
-Seth A. Klarman
Chief Executive and Portfolio Manager of the Baupost Group
311929 Stock Market Crash Japan Stock Market Crash
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
Sep
-20
Sep
-21
Sep
-22
Sep
-23
Sep
-24
Sep
-25
Sep
-26
Sep
-27
Sep
-28
Sep
-29
Sep
-30
Sep
-31
Sep
-32
Sep
-33
Sep
-34
DOW Price
32
Refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an
investment benchmark index. In passive management, investors expect a return that closely replicates the investment weighting
and returns of a benchmark index and will often invest in an index fund.
Benefits of Active Portfolio Management
Opportunity for Outperformance
Additional Risk Management
Ability to adjust portfolios to a changing environment
Opportunity for investors to find the “right match”
Extinction?
“Two men were examining the output of the new computer
in their department. After an hour or so of analyzing the
data, one of them remarked: "Do you realize it would take
400 men at least 250 years to make a mistake this big?”
-Nicholas Negroponte
Chairman Emeritus of Massachusetts Institute of Technology’s Media Lab
34A copy of this presentation is available on www.kopernikglobal.com.
We view ourselves as owners of businesses:
• Market inefficiencies present numerous opportunities to identify quality businesses that we believe are mispriced
• Independent research of a company’s business, industry supply/demand, competitive positioning and management
uncovers opportunities
We predicate our intensive, original research on:
• A global perspective to enhance understanding of markets and companies
• A long-term investment horizon to allow for inherent value to be realized
• Value as a prerequisite, not a philosophy
• Bottom-up, fundamental analysis to gain a thorough understanding of a company’s business and valuation
• Industry-tailored valuation metrics to assess distinct industry characteristics and success drivers
36
• Far-reaching investment experience in global markets with a long record of success
• Searching for market anomalies with industry specialists who have diverse backgrounds and distinct perspectives
• Group vetting to challenge ideas and develop high conviction
37
Additionally, Kopernik’s analyst team is supported by the team of research associates: Seamus Sullivan, Hailey Ferrara, and Lillian Cousins.
The information presented herein is proprietary to Kopernik Global Investors, LLC. This material is approved for a presentation to authorized individuals only and, accordingly, this
material is not to be reproduced in whole or in part or used for any purpose except as authorized by Kopernik Global Investors, LLC.
Please consider all risks carefully before investing. The accounts managed according to the Global All-Cap investment strategy are subject to certain risks such as market,
investment style, interest rate, deflation, and illiquidity risk. Investments in small and mid-capitalization companies also involve greater risk and portfolio price volatility than
investments in larger capitalization stocks. Investing in non-U.S. markets, including emerging and frontier markets, involves certain additional risks, including potential currency
fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, less disclosure, and the potential for market volatility,
expropriation, confiscatory taxation, and social, economic and political instability. Investments in energy and natural resources companies are especially affected by
developments in the commodities markets, the supply of and demand for specific resources, raw materials, products and services, the price of oil and gas, exploration and
production spending, government regulation, economic conditions, international political developments, energy conservation efforts and the success of exploration projects. There
can be no assurances that investment objectives will be achieved.
Kopernik Global Investors, LLC is an investment adviser registered under the Investment Advisers Act of 1940, as amended.
This document, as of October 19, 2017 is descriptive of how the Kopernik team manages the Global All-Cap strategy. There is no guarantee that any strategy’s investment
performance objectives will be achieved. This profile is not legally binding on Kopernik Global Investors, LLC or its affiliates.
© 2017 Kopernik Global Investors, LLC | Two Harbour Place | 302 Knights Run Avenue Suite 1225 | Tampa, Florida 33602 | 813.314.6100 | www.kopernikglobal.com
38