NEW YORK - Oak Hall Capital Advisors L.P., New York, has introduced a dedicated portfolio of raw material equities for investors.
The new portfolio will invest in equity of companies such as steelmakers and paper producers, said John Hathaway, Oak Hall's president.
Oak Hall will start marketing the strategy to existing clients and later will seek out new clients, said John Hock, executive vice president.
The minimum portfolio size for institutional accounts is $5 million.
In keeping with the company's contrarian views, Oak Hall's managers expect a bull market in commodities.
They predict they will outperform other asset classes over the next five years.
Demand and prices for raw materials will trend upward based on the pent-up demand for those products among developing nations, said Mr. Hathaway.
As an example, he noted Lone Star Technologies Inc., a maker of tubular steel for use in gas pipelines, which would benefit from increased demand for both steel and natural gas.