Acorn Capital’s NextGen Resources Fund, leveraging the geological expertise of Rick Squire, has delivered impressive returns by strategically investing in small and emerging resources stocks. Squire’s background includes a PhD in geology and research fellowships at leading Australian universities, making him uniquely qualified to assess technical risks in the mining sector. Acorn Capital is a Melbourne-based firm with over 25 years of experience that focuses on identifying and capitalizing on inefficiencies in the Australian market. Its NextGen Resources Fund manages around $40 million.
The fund has returned 20 per cent annually since September 2020, outperforming the S&P/ASX Small Resources Index. Recent performance is even more striking, with a surge of over 60 per cent in the 12 months to September, compared to the benchmark’s 45.5 per cent. Squire attributes this success to identifying value across all stages of mining company development, from exploration to production. His strategy involves evaluating technical risks and exploiting mispricing that occurs as investors await results.
While gold stocks comprise nearly half of the fund, Squire actively adjusts his positions based on commodity price movements. He initially invested in producers like Perseus Mining and Ramelius Resources before rotating into developers such as Meeka Metals and Pantoro Gold. More recently, he has focused on explorers like Waratah Minerals and Nordic Resources. A significant holding is in Golden Horse Minerals, an explorer with a substantial land position in Western Australia.
Squire is also optimistic about rare earths, particularly those projects with the right mix of rare earths that can be brought into production quickly. He favours projects like Meteoric Resources in Brazil and Australian Rare Earths, noting their potential to outpace larger, longer-term projects. Acorn is also invested in lithium producers PLS and Elevra Lithium, capitalising on the early stages of the lithium recovery. Acorn Capital believes its extensive knowledge and experience provide a competitive edge in the resources market.
