Lind Partners’ New York-based managing director Jeff Easton acknowledged that conditions were tough for juniors at the moment but he said it was slightly improving.
“Things will continue to improve as discoveries are made and the companies with no true prospects and less qualified management teams fall away, leaving a smaller but more attractive set of companies for investors,” he said.
Mr Easton added that the current market reminded him of the US technology sector in 2003. He outlined that after the US tech markets had crashed and bottomed, the vast majority of investors lost interest, creating a very depressed and illiquid market.
“It also created some of the best opportunities I have seen in my investing career. One was able to buy Apple at $US11 a share,” he said.
“From this perspective, investing in the Australian junior sector is far more attractive than it has been in some time.”
The head of the asset management company said Australia had been and continued to be a fantastic place to invest, adding that for Lind, Australia also served as a gateway to international investment opportunities.
Lind Partners manages the Australian Special Opportunity fund, dedicated to investments in Australian listed companies and, to a smaller degree, private ventures.
Mr Easton said when looking in the resources space he looked mainly for companies that had good projects, along with effective and passionate management teams.
“We do not try to time the markets. Rather, we seek to have broad exposure to as many commodities as possible,” he said.
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