Pro Picks: Bet the Jockey, Not the Horse
Commodity funds favoured by Bob Thompson of Thompson Investment Partners
Watch the full episode: Are commodities entering a stealth bull market? In this episode of In the Money with Amber Kanwar, portfolio manager Bob Thompson of Thompson Investment Partners (part of Raymond James) makes the case for why investors should look beyond tech and get serious about the next major cycle: commodities.
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1. Sprott Silver Miners & Physical Silver ETF (Ticker: SLVR, NASDAQ)
Sector: Silver
Launched in January 2025, this ETF has surged 43% year-to-date, outpacing silver’s 20% gain. Bob is bullish on silver’s dual role as a precious and industrial metal, managed by Sprott’s seasoned team with a proven track record in precious metals.
Why Bob Likes It:
Supply-Demand Imbalance: Silver has faced four years of supply deficits, with demand rising for industrial uses like solar panels and potential solid-state batteries for EVs. This mirrors past palladium price spikes.
Gold-to-Silver Ratio Opportunity: Recently at 100:1 (a rare crisis-level high), the ratio suggests silver is undervalued relative to gold. For example, if gold is $3,000 per ounce, silver is $30 per ounce ($3,000 ÷ 100). Historically, this ratio has only hit 100:1 three times in 40–50 years, during crises like COVID. When the ratio narrows to 30:1 or 40:1 at the end of a bull market, silver’s price could rise significantly to align with gold, offering substantial upside.
Substitution Demand: As gold prices soar, investors and consumers (e.g., at Indian weddings) are turning to silver, boosting demand for this more affordable precious metal.
2. Dynamic Active Mining Opportunities ETF (Ticker: DXMO, TSX)
Sector: Diversified Mining (Gold, Copper, Uranium)
This ETF, managed by industry veterans, offers exposure to a curated mix of gold, copper, and uranium stocks. Bob praises Robert Cohen’s ability to generate nearly 20% annualized returns since 2011, far outpacing the GDXJ junior mining index.
Why Bob Likes It:
Elite Stock Picking: Cohen, a metallurgist, excels at identifying small-cap mining stocks likely to become operational mines, delivering alpha even in tough market cycles.
Diversified Exposure: The fund’s flexibility to invest across gold, copper, and uranium allows Cohen to capitalize on cyclical opportunities in multiple commodities.
Small Portfolio Advantage: With a nimble, focused portfolio, DXMO avoids the constraints of larger funds, enabling outsized returns through high-conviction picks.
3. NinePoint Energy Fund (Ticker: NNRG, Cboe Canada)
Sector: Energy (Oil and Gas, with a Natural Gas Tilt)
Managed by Eric Nuttall, a well-known energy expert, this fund has outperformed oil prices and the TSX oil producers index in 2025. Bob sees opportunity in its flexible approach and Nuttall’s knack for navigating energy’s volatility.
Why Bob Likes It:
Manager Flexibility: Nuttall’s ability to shift between small-, mid-, and large-cap stocks across the U.S. and Canada allows him to exploit relative valuations in a dynamic sector.
Natural Gas Focus: Nuttall’s overweight position in natural gas aligns with emerging opportunities in this underappreciated energy segment, offering diversification from oil.
Proven Outperformance: Despite energy sector volatility, Nuttall’s high-turnover strategy has delivered strong returns, capitalizing on undervalued opportunities.
Disclaimer: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
Elbows up!