“If you’re thinking about creating wealth, you find big problems and you solve them,” Lee-Chin says. “In so doing, you’re going to achieve three things. Number one, you’re going to differentiate yourself because not too many people want to solve big problems. Number two, you’re going to augment your reputation. And number three, you’re really addressing issues that are relevant, not only to clients but to society. What could be a higher calling?”
Both funds hold a selection of public names directly exposed to the themes of nuclear energy and radioisotope treatment of cancer. In addition to the two funds mentioned, Portland made investments in private companies, which positioned it to better understand and identify similar opportunities in public equity markets. A broad scope and understanding of each field is important because, while utility names might offer some exposure to nuclear and healthcare names may come with some exposure to radioisotopes, they come with a myriad of additional influences.
The other reason to hold privates, Lee-Chin explains, is to position Portland as an owner-operator. He notes the example of one Munich-based company called ITM Isotopes Technologies Munich SE, a key supplier to Novartis AG for their radiotherapeutic cancer drug. Through their investment Lee-Chin sits on the board of that company and therefore can access many of the other core names, technologies, and opportunity sets in this industry. By putting skin in the game, as it were, Portland is better informed about its future investments in this theme.
Dragos Berbecel explains that he saw a similar need for private access in the nuclear energy space. Berbecel is a portfolio manager at Portland Investment Counsel and co-lead on these funds with Lee- Chin.
“We were somewhat surprised by the paucity of investment options that fit the industry as we saw it. There was a piecemeal selection of miners and uranium utilities, while other funds might have been prompted to broaden their scope to more of a ‘sustainable energy’ focus by adding wind and solar,” Berbecel says. “We didn’t feel like what was out there properly encapsulated the promise of nuclear, so we created this fund to be well differentiated, and we’re pleased to see the results starting to show.”
