Meketa Investment Group explores private natural resources as a real asset class, focusing on return drivers, diversification benefits, and inflation sensitivity across sectors like energy, mining, and agriculture. The paper highlights equity-like long-term returns but cyclical volatility, and argues manager selection meaningfully impacts outcomes.
Meketa on Natural Resources
Meketa
Adam Toczylowski
Research
23 Pages
Key Takeaways
Equity Like Returns: Natural resources delivered returns comparable to equities over long periods, though performance cycles vary with commodity prices and macro conditions.
Energy Dominates Capital: Nearly 90% of $190 billion raised from 2015–2017 flowed into energy funds, highlighting concentration risk within the investable universe.
Inflation Hedge Potential: During 1973–1981, energy equities outperformed the S&P 500 by roughly 12% annually in high inflation environments.
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