Cobalt has been mined for millennia and used for a variety of purposes – from blue pigment to green vehicles. Today, cobalt is critical in the chemistry of the ubiquitous lithium-ion battery, which powers cellular phones, laptops and electric vehicles. It is so critical, in fact, that the specter of a supply problem has investors on high alert. And for good reason. Much of the world’s supply of cobalt comes from the very unstable Democratic Republic of the Congo, and most of that supply is now controlled by China. Inside this piece we examine cobalt’s increasingly important place in the world and the challenges companies face in securing a supply of the blue mineral.
Recent Insights
Country Indices Flash Report – April 2025
U.S. policy and global equities swung wildly during the month as ‘Liberation Day’ was followed by a 90-day pause in many tariffs and the administration’s harsh tone toward Fed Chair Jerome Powell softened. These America-centered policy shocks led to broad dollar weakness: the euro and pound reached three-year highs. EAFE had declined more than 10% before fully recovering, ending April in positive territory.
April 30, 2025
Quarterly International Equity Strategy Q1 2025
Non-US assets found renewed vigor to begin 2025, in sharp contrast to late 2024. Echoing the first Trump administration eight years ago, U.S. policy uncertainty weighed on the dollar and U.S. equities, while stimulus and reform improved sentiment elsewhere (the Eurozone in particular). The resulting spread of MSCI EAFE over MSCI USA was the widest first-quarter return differential since 1986. While reduced policy visibility may dampen real investment and activity across many countries and industries in the short-term, we believe recent volatility may provoke broader re-examination of allocation to non-US equities, and a constructive starting point for longer-term performance.
April 28, 2025
Quarterly Technology Equity Strategy Q1 2025
The Bailard Technology Strategy posted a 1Q25 total return of -9.35% net of fees—ahead of both the benchmark index (S&P North American Technology Index) and the competitor-comprised benchmarks. The Morningstar U.S. Open End Technology Category returned -9.98% and the Lipper Science and Technology Fund Index returned -10.88%, while the S&P North American Technology Index returned -11.43%. Over longer time periods of 3, 5, and 10 years, the Strategy’s net returns continued to lead the competitor’s peer benchmarks—quite substantially, as seen in the table to the right.
Despite market volatility in Q1, we have not significantly altered our positioning. Our view is that nothing is broken in tech, and we remain convicted in our investment process. With prices and valuation changing dramatically, we expect to optimize our positioning by bolstering or adding high-quality companies trading at attractive discounts to long-term value. We anticipate stabilization in industry fundamentals and fiscal policy in the latter part of this year.
April 16, 2025
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