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Bay Resource Partners Offshore Fund, Ltd.

GMT Capital Corp.

Company Overview

GMT Capital was formed in 1993 by Tom Claugus after a successful 17-year operating career as an executive with the Rohm and Haas company. Bay Resource Partners, L.P. (onshore, 3(c)1) was officially launched January 1, 1993 with approximately $3 million. It was followed by Bay Resource Partners Offshore Fund (offshore) in 1998 and Bay II Resource Partners, L.P. (onshore, 3(c)7) in 2001. The firm has grown steadily, more from performance than new assets, and today manages over $5 billion.

Fund Strategy

GMT Capital currently manages three parallel funds, Bay Resource Partners, L.P. (since 1993), Bay II Resource Partners, L.P. ((3c)(7) fund (formed in 2001), and Bay Resource Partners Offshore Fund, Ltd., (1998). We are long-term, value based, long/short equity investors with a net long or net short bias determined by the overall level of the market. From inception in 1993 through 2004, our domestic fund has returned an annualized compound return net of fees of 19.3% versus 10.5% for the S&P Index, with a -.26 correlation and alpha approximating an annualized 26.8%. Corporate objectives are, first, long-term wealth creation for our partners and, second, integrity and stewardship in all areas, treating our partner’s capital as we do our own. Our approach and perspective are different from most as we take a long-term (3 year) investment horizon and more of a private equity or operating view of investments – reflecting the background of Tom Claugus, the owner and founder of GMT Capital. Mr. Claugus spent 17 years with the Rohm and Haas Company, running operations in Mexico, the US, and Europe. From this industry operating perspective, the firm’s investment framework centers on the application of experience-based business judgment, extensive research, and due diligence to the capital allocation process. For most of our history, our fund has provided excellent portfolio diversification characteristics and strong performance in down markets. From our inception in 1993 through year-end 2004, the fund’s returns were positive in 43 of the 51 down months for the S&P 500 -- producing both a negative beta and correlation coefficient versus the S&P 500 index and, in our clients' portfolios, reducing overall volatility and, at the same time, increasing returns. With the dramatic fall in the markets 2000 through 2002, the funds have moved increasingly net long. As such, we expect our correlation characteristics to be somewhat more positively correlated, reflecting this positioning. Tax efficiency and high tax-adjusted returns are a priority for our domestic funds -- over the benchmark fund’s first twelve years (1993 – 2004), we have been able to defer approximately 81% of total security gains.

Quick Facts

Category: Equity Derivatives
Fund Launch Date: 1998-08
Monthly Performance Data:
Aug 0.7%

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