Mexico Business spoke to Matthew Gordon about the origins of CRUX Investor, what he looks for in a good company, industry trends, Mexico as a mining jurisdiction and his junior company recommendations.
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What information and business intelligence gap does CRUX Investor address and how do you measure success?
"I used to be banker and when I entered the Junior mining world, I soon realized that there was a great deal I did not know because the rules of the game were different. Some fund managers, analysts and I recognized that there was a massive scarcity of information in the junior mining space. This problem was caused by MifID II which meant brokers and researchers were unable to provide information to retailers, gearing it instead to institutional use.
CRUX Investor gathers and provides better information to make intelligent investment decisions by conducting interviews and writing company and institutional reports that people without a technical background can understand. We are demystifying investing in mining through education, pointing to red flags, asking the hard questions and holding companies accountable."
How does your information complement what mining companies are reporting?
"We are not here to complement the company’s information, but to validate what they say and what they write. Therefore, we are listening to companies. I believe companies need to communicate better and more regularly to provide useful information, not just the issues they want you to hear but those we need to hear. CRUX Investor has encouraged companies and CEOs to communicate better. We want to understand their business plan and their strategy to deliver it. It’s your money that they are playing with."
How can you guarantee the reliability of the information provided by Crux Investor?
"When CRUX Investor began, we set ourselves a lot of rules and a framework by which we would abide when investing. We determined that we would base this framework only on information that is publicly available because that is all retail investors have access to. Therefore, we are not in a position to guarantee anything because we are using information provided by the public company to investors. We are in the same boat as retailers, so we will fight hard for them.
One of the most successful fund managers in this space said, to me “If we get this right, more than 50 percent of the time, I think we have had a good year.” So the question is how much money you make when you are right, and how much you lose when you are wrong."
Read the Full Article here: https://articles.cruxinvestor.com/mexico-business-talks-with-matthew-gordon
